State Bank of India to merge 5 associate banks from April

State Bank of India to merge 5 associate banks from April

State Bank of India will merge five of its associate banks with itself from April 2017.

SBI has five associate lenders are State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad. Among the associate banks, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed.

SBI informed stock exchanges that the Government of India has issued orders on February 22 under sub-section (2) of Section 35 of the State Bank of India Act to implement the merger process.

The government order says “the entire undertaking of SBBJ, SBM, SBT, SBP and SBH shall stand transferred to and vested in the State Bank of India from April 01, 2017.”

In June 2016, the Cabinet approved the merger of State Bank of India (SBI) and five of its subsidiary banks to make it a global-sized bank.

The merged entity will become a banking behemoth with an asset base of about Rs 37 lakh crore with 22,500 branches and 58,000 ATMs. The merged will also have over 50 crore customers.

SBI first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged with it.

Source:Hindustan Times