Abstract

In Mid-2016, the Indian government approved the merger of State Bank of India (SBI), the largest bank in India with its 6 associate banks. . This merger had created a banking powerhouse with a balance sheet size of Rs. 37 trillion. On one side, merger brought many opportunities to SBI especially in the area of increasing operational efficiency while on the other hand, it also throws up some challenges especially in the form of NPA management and HR issues which it has to overcome quickly to realize the benefits of the merger. The case provides sufficient scope to discuss challenges faced by senior officers of SBI to ensure the success of the merger.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the challenges faced by SBI in merger process
• Analyze the various possible synergies from the merger

Keywords

State bank of India, Merger and Acquisition, Associate Bank, Challenges, Synergies, Non-Performing Assets, Employees Management, Accounting Policies, Employee Unions, Leveraging Technology, Amalgamation