Central government cabinet approves merge associate banks of State Bank of India
Posted on: 16/Jun/2016 5:30:40 PM
The central government cabinet of ministers has given policy-based approval for State Bank of India to merge all its associate banks.
The Board of Directors of State Bank of India had submitted last month its recommendation to merge the 5 associate banks of the state Bank of India.
Earlier, the central finance minister Arun Jaitley had informed on 6th June that the approval would be given for the above merger.
With the merger, the number of SBI customers would exceed 50 Crores.It would have total assets of Rs. 37 Lakh Crores.SBI will have 22500 branches and 60000 ATMs.SBI alone has 16500 branches.
The Associate Banks are State Bank of Bikaneer and Jaipur SBBJ), State Bank of Travancore (SBT), State Bank of Patiala, State Bank of Mysore, and State Bank of Hyderabad.
Out of this, State Bank of Hyderabad and State Bank of Patiala are not listed in the stock market.
The other 3 banks traded higher. The share of State Bank of India went up only by 4 percent.
During the year 2008, State Bank of Saurashtra was merged with SBI. During the year 2010, State Bank of Indore merged with SBI.
If all the associated activities progress as per schedule, it is expected that the merger will be completed in 5 months.
The Bank Employees’ Unions have protested this merger and are planning to go on strike on 28th and 29th June.
