As an initial step for the proposed merger of State Bank of India with its five associate banks, the former has asked its associates to clean up their loan books, a news report suggests. The associate banks were directed to align the classification of loans with the parent bank, even if it requires them to take a hit on bottom-line. Post-merger, according to the bank, an account can’t be classified as standard in the books of one associate bank and sub-standard for another associate bank or parent bank. The bank is planning to complete the merger by March 2017. Apart from its associate banks, SBI will also merge Bharatiya Mahila Bank with itself.
