SBI approves merger with associate banks
The merged entity will create a banking behemoth, which can compete with the largest in the world, with an asset base of Rs 37 lakh crore or over $555 billion.
Country's largest lender State Bank of India on Thursday approved the merger of associate banks with itself. Here are five things to know about the merger.
- "The Central Board of Directors of the State Bank of India have accorded their approval to the Scheme of Acquisition of State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and Bharatiya Mahila Bank Limited (BMBL) by State Bank of India (the Scheme) under Section 35 of the State Bank of India Act, 1955, subject to approval of the Scheme by Reserve Bank of India and Government of India," the bank said in a statement.
- The proposed merger will likely create one of the largest lenders in Asia.
- The latest merger will create a financial behemoth with assets worth Rs 37 lakh crore ($550 billion), including the fixed assets of associate banks worth about Rs 4,000 crore.
- SBI alone has close to 16,500 branches, including 191 foreign offices, spread across 36 countries.
- Earlier too, SBI has merged two of its erstwhile associate banks with itself - Bank of Saurashtra in 2008 and State Bank of Indore in 2010.