SBI merger won't hurt NRIs, here is why
- Five of its associate banks will be merged with SBI.
- This merger has got government's nod and is waiting for regulatory clearance.
- Kerala along with Punjab will have some impact since many NRIs have their accounts in State Bank of Travancore and State Bank of Patiala.
Early this year, the government of India cleared the proposal for merging State Bank of India with five of its affiliated banks, namely State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Hyderabad, State Bank of Patiala and the Bharatiya Mahila Bank. This merger will not have any significant effect on these banks' NRI customers, clarified the Managing Director of SBI, Rajnish Kumar.
SBI is one of the top global banks in the world with wide network and presence. After the merger, this bank will have more than 500 million customers which will cover around one-fifth of India's total GDP.
Kumar stated that Kerala and Punjab will be heavily impacted since State Bank of Travancore and State Bank of Patiala has many NRI accounts. After the merger, the NRI customers of these banks will have larger reach as well as technological benefits offered by SBI.
At present, this much-anticipated merger is waiting for regulatory clearance.
About demonetisation, Kumar said that its impact on the domestic economy of the country will be short-term. He further added that for NRIs, the impact of currency ban will be in the value of rupee as compared to the dollar and that diminishing value of property investments which makes this a good opportunity to invest in property in India.