Parliament committee slams govt on SBI Act changes

The Parliament committee submitted its finance table report on the SBI Amendments Bill 2009. In its report, the committee slammed the government on the State Bank of India Act changes. The committee report states that the government needs to review its policy of merging subsidiaries with SBI and that there were issues related to managing large sized banks.

State Bank of Indore and State Bank of Saurashtra have already been merged with State Bank of India. Other SBI subsidiaries include State Bank Of Hyderabad, State Bank of Mysore and State Bank of Patiala. Many provisions of the SBI Act of 2007 amendment were not implemented, the report said. The reports also suggested that there was ambivalence in approach to merger and consolidation of public sector banks and there urgent need to analyse issues related to merger of PSBs. The report also stated that the government needed to assess the rising non performing assets of SBI group banks. The SBI Amendment Bill was introduced in December 2010.