Chairman of the largest lender of the country, State Bank of India, Mr Pratip Chaudhuri has indicated that the bank would presently focus most on reducing its burden of bad loans and pension liabilities and give its merger plans a back seat.

He said that a slight bump for investors would continue for some more time though.

"It will be slightly subdued for two more quarters as we have to make a provision of Rs 550 crore each for provision coverage." The good part, he says, is signals which indicate that the bank's net interest margin, a key gauge of efficiency, is on an upward curve. "I see it coming back," he said.

Speaking about merger plans he said, "It is very much on the table but associate bank mergers are not going to happen in a hurry. It is not because we are not convinced that merger is the right thing, but it is because it requires capital and operational efficiency."

The main aim of the bank would be in boosting its deposit bank and heighten lending activity.