Sajen Peter, director of State Bank of Travancore has objected to the way the SBI merger is being done. In an interview with the media, the director explained his objections.
He commenced stating that they had objected on the basis of the fact that they were unable to have an informed decision taken at that meeting for want of basic data. He added that he wanted to know to what extent the market share had grown, he wanted information on what extent the profitability had grown. These details were not available when this agenda was presented before them on 17th May for the board meeting, he added.
A TV reporter questioned the director whether his concerns in anyway changed the swap ratio, which had already been announced between SBT as well as the SBI and if it could delay the consummation of the merger or if it was already too late.
Peter clarified that he was not against the merger as such, but when they merged they should know what they were merging, like the synergy which was expected out of the merger should add to the growth for which the basic details whether study conducted by the SBI on it should be made available to them, otherwise they would not be able to draw a conclusion and make a decision.
He raised another issue stating the historical background of SBT. He said that SBT originated from the Travancore Bank Limited which was a state sponsored bank, so naturally they should have got the opinion of the state government and made it a part of the agenda as it was important to know what the state government had to say about it.
Meanwhile, SBI share price was trading 1.86 per cent higher at Rs.260.75 in early morning trade on NSE today. If you visit SBI share price history, you will get a clear idea of the fundamentals of the stock.
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