The high-powered committee headed by SBI managing director S Vishwanathan would submit its report by July-August, and later based on the report the merger process could start by September, SBI chairman Pratip Chaudhuri told reporters

State Bank of India on Friday said the proposed merger of its five associate banks with itself could start by September after a high-powered committee submits its report on the same.

The high-powered committee headed by SBI managing director S Vishwanathan would submit its report by July-August, and later based on the report the merger process could start by September, SBI chairman Pratip Chaudhuri told reporters.

State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore would be the target associate banks for merger, Chaudhuri said.

Out of five associate banks, three are listed, and two are in the direct ownership of SBI, he said, adding “we would take non-discriminatory way to decide and choose merger of any of the five associate banks. It would be a long process that would take employees’ confidence and participation”.

SBI’s capital was not so strong earlier, but with the March balance sheet the capital became very strong and for merger there should be a cash of Rs1,000-Rs3,000 crore, he said.

SBI did the first ever amalgamation of its associate State Bank of Saurashtra in 2008 followed by State Bank of Indore in August 2010.

On gold, whose large imports have widened the current account deficit, he said that RBI and government should take necessary steps to curb the demand for the precious metal.

Banks get just Rs5 on one gram of gold sold besides providing purity of gold to customers, the SBI chairman said.

Finance minister P Chidambaram on Thursday said that Reserve Bank of India (RBI) has advised banks not to sell gold coins to retail customers.

On loans to troubled carrier Kingfisher, Chaudhuri said that despite SBI’s efforts the airline could not stand up again, hence the recovery was underway against it.

“We are selling its shares, whereas the real estate disposal needed legal procedure and require auction and best bidder,” he said.

Saddled with an over Rs7,000 crore bank debt, besides dues to various stakeholders, Kingfisher reported net loss at Rs2,141.80 crore for the March quarter 2013.

The SBI Chairman expressed serious concerns that the country’s growth rate was reduced below 5%.

The RBI is balancing inflation and growth rate, he said, adding if the growth rate is ignored, it would bring very dangerous results.

“I think liquidity be raised, CRR be cut down, and raise the export credit which was very slow or halted,” he said.

Corporate segment is relatively low in the area of new investment, he said when asked on comment on corporate banks' role.

He also said that after getting success in opening new bank branches in the population density of 2,000, the bank would reach the smallest villages having human population of 1,000, and open ATMs and branches where ever possible.

“We want every one has not only a bank account but he or she should operate other products like insurance, mutual fund,” he said.

On new employment generation, SBBJ opened over 2,100 new jobs, while SBI gave 20,000 new jobs last year, the chairman said.

On a question the chairman said, “SBI is planning credit growth not less than 20% “.

Referring to SBBJ Annual General Meeting, Chaudhuri said shareholders expressed great satisfaction over the bank's growth and plans though it had NPA at 3.26%.