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SBI merges with six other banks to become worth Rs. 37 lakh crore
Posted on: 19/Aug/2016 2:49:51 PM
The Board of Directors of the State Bank of India, or SBI, approved merger of its five associate banks and Bharatiya Mahila Bank with itself. It also finalised the share swap ratio for three of the listed subsidiaries and BMB. This brings the bank’s assets to over Rs. 37 lakh crore.
In an official statement, the SBI said, The central board of directors today approved the merger of State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore and BMB. As per the merger proposal, SBBJ shareholders will get 28 shares of SBI, of Re 1 each, for every 10 shares, of Rs 10 each. Similarly, SBM and SBT shareholders will get 22 shares each of SBI for every 10 shares they hold. In the case of Bharatiya Mahila Bank, 4,42,31,510 shares of SBI will be swapped for every 100 crore of BMB shares having a face value of Rs 10. The two unlisted subsidiaries are fully owned by SBI. The merger will create a banking behemoth of global scale with a balance sheet of Rs 37 trillion or over $555 billion, making it one of the top 50 global financial powerhouses. The merged entity will have 22,500 branches and 58,000 ATMs serving a customer base of over 50 crore. The share swap ratio is favourable to minority shareholders. We are confident that the ratio would be largely acceptable to all shareholders.
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