Bank Merger 2.0: State Bank of Indias Pivotal role Explained
The government may soon merge Public Sector Banks. Plans are underway for this. Increasing its stake in larger banks could further strengthen the position of State Bank of India. The bigwigs holding stakes are also expected to benefit from this. So, after the government, who has the largest investment in this? Find out the details.
New Delhi: To strengthen the position of government banks, the government is planning Bank Merger 2.0. Under this, it is planned to merge 8 small banks into big government banks. In this, the country's largest government bank SBI i.e. State of India will play an important role. Bank merger is also expected to increase the power of investors who place bets on SBI.
The government has the highest stake in the State Bank of India. According to Trendline's data, the government accounts for 55.5 percent. Apart from this, domestic institutional investors i.e. DIIs have the highest share. By September 2025, their share was recorded at 27.8%.
SBI & Bank Merger 2.0
If we talk about the largest stake in DII, then Mutual Fund Houses have placed bets in SBI on a large scale. According to the data, by September 2025, mutual funds accounted for 14.23% in SBI.
After mutual funds, the insurance sector has the highest share of 11.25%.
Many big mutual fund houses have invested their money in State Bank of India. These include SBI Mutual Fund Scheme (Sbi mutual fund schemes), which has 3.21 percent stake, ICICI Mutual Fund Scheme (Icici Mutual Fund Schemes) 1.81% stake, HDFC Mutual Fund Scheme (Hdfc Mutual Fund Schemes) 1.77 percent stake, Nippon India Life Scheme (Hdfc Mutual Fund Schemes) Mutual Fund Scheme (Nippon Life India mutual fund schemes) is 1.40 percent stake, Kotak Mutual Fund Scheme (Kotak mutual fund schemes) is 1.07 percent stake.
Apart from mutual funds, insurance companies have also placed huge bets on this. These include LIC and NPS trusts.
Under the merger plan of Public Sector Banks (PSBs), it is planned to merge Indian Overseas Bank, Central Bank, Bank of India and Bank of Maharashtra into banks like Punjab National Bank (PNB), Bank of Baroda (BoB) and State Bank of India.