SBI may not charge royalty for its logo

SBI-LOGOState Bank of India may not charge royalty from its associate banks for using its logo. The issue of charging a royalty was first proposed in March 2009. But thereafter SBI has not initiated for such policies. Regarding royalty, Chairman of State Bank of India, Mr. O. P. Bhatt had earlier said that SBI is not looking to earn profit from such pricings.

Rather, this will be taken as an account of security for the SBI associates. The associate banks had to pay about 1% of their net profit as a royalty for using the SBI's logo. By the end of this year, the boards of associate banks were supposed to go for a meeting and take a unanimous decision on paying the royalty to its parent bank SBI. But during last year, after March no further proceedings have taken place on this issue.

Mr. K. Vijaya Kumar, General Manager, Treasury for State Bank of Mysore has informed that the associate banks are not paying any royalty right now although SBI's logo is still in use. He has anticipated that there might be a re-examination by the parent bank.