Govt approves SBS merger with parent SBI

8220;The merger of SBS with SBI would enable it to upscale in terms of footprint, manpower and other resources8230;It would also enable it to face competition arising from globalisation of the economy,8221; information and broadcasting minister Priyaranjan Dasmunsi said after the Cabinet meeting.

In a separate decision, the government will introduce amendments in the State Bank of India Amendment Bill introduced in the Lok Sabha in December 2006. As a result, RBI8217;s nominee director would be replaced by an official with 8220;experience and expertise8221; in banking regulation.

With the UPA finding a new ally in reform-friendly Samajwadi Party, the government has indicated that the pace of reforms will be increased.

Yesterday in Rajasthan, finance minister P Chidambaram had said, 8220;We will try to take the reform process forward8230; The insurance bill is one of many bills which is pending.8221;

He had said the government, which won the trust vote in Parliament on Tuesday, would 8220;reach out to other parties8230; try to build on the majority that we have demonstrated8230; and pass these bills.8221;