State Bank of India and Alliance Capital may not complete a planned alliance, according to sources at the State Bank of India. Although a memorandum of understanding was signed six months ago, the agreement has yet to be formalized. The Indian banks new chairman is having second thoughts about the deal, which was signed in the last days of the previous chairman, sources said. The State Bank of India was to hold a 60% stake in the venture, and the remaining 40% was to be held by Alliance. One of the proposals under consideration was for the venture to enter the individual pension business.