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SHRI B. MAHTAB (CUTTACK): Sir, I stand here today to deliberate on the State Bank of Saurashtra (Repeal) and the State Bank of India (Subsidiary Banks) Amendment Bill, 2009. It was in the month of November on 19th, a news item appeared in a newspaper published from Hyderabad. It categorically stated that the Union Finance Ministry has gone into a huddle with the leading public sector undertaking bankers to explore the possibility of creating a few large banks through mergers and acquisitions. It also further said that the heads of five State run major banks, that is, Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India and Oriental Bank of Commerce attended the meeting called by Additional Secretary, on Wednesday night.

MR. CHAIRMAN : Please wind up.

SHRI B. MAHTAB CUTTACK): When in SBI, the Government is lowering its stake, what would be the position of stakes of these subsidiary banks? I do not know whether SBI Saurashtra is listed; SBI is listed; if SBI Saurashtra is not listed, how it is going to help consolidation and merger?

MR. CHAIRMAN: Please take your seat.

SHRI B. MAHTAB : I would say that I am not against merger of banks per se. But I would only remind the Government that when two organizations merge, a lot of activities have to take place so that both the personnel and the clients get the same service which they were getting in a smaller bank. That is very much required. I am not aware, whether SBI Saurashtra’s interest has been taken care of.

MR. CHAIRMAN: Please take your seat. The next speaker is Shri Jagdanand Singh.

SHRI B. MAHTAB : I would conclude by saying this – merger as such is not a bad idea; going in a very big way in a global scale, is not at all a bad idea, but at the same time, I would also remind the Government that when a merger takes place, let us not carry a weaek-link with another one – of course, SBI Saurashtra is not.

MR. CHAIRMAN: Shri Jagdanand Singh.

SHRI B. MAHTAB : But my question still remains – what is going to happen to other four subsidiaries? Do you have a time-frame for the mergers of those banks?