The NDA Govt Cabinet on Wednesday June 15,2016 gave go-ahead to the merger of State Bank of
India (SBI) and its associate lenders that would make the state-owned
lender a global-sized bank
India's largest lender SBI had last month mooted the proposal for merger of its five subsidiary banks with itself and acquisition of the newly set up Bharatiya Mahila Bank.
SBI has 5 associate lenders --
SBI stock was up 3.9 %
The merged entity will become a banking behemoth, which could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over USD 555 billion, with 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.
Presently SBI has close to 16,500 branches, including 191 foreign offices spread across 36 countries.
SBI first merged State Bank of Saurashtra with itself in 2008.
Two years later, State Bank of Indore was merged with it.
SBI Chairperson Arundhati Bhattacharya said merger of SBI and its associate banks is a win-win for both the sides.
"Currently, no Indian bank features in the top 50 banks of the world. With this merger, some visibility at global level is likely to increase. Customers of associates and subsidiaries of the Bank will also be beneficiaries," she said.
India's largest lender SBI had last month mooted the proposal for merger of its five subsidiary banks with itself and acquisition of the newly set up Bharatiya Mahila Bank.
SBI has 5 associate lenders --
- State Bank of Bikaner and Jaipur
- State Bank of Travancore
- State Bank of Patiala
- State Bank of Mysore and
- State Bank of Hyderabad
SBI stock was up 3.9 %
The merged entity will become a banking behemoth, which could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over USD 555 billion, with 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.
Presently SBI has close to 16,500 branches, including 191 foreign offices spread across 36 countries.
SBI first merged State Bank of Saurashtra with itself in 2008.
Two years later, State Bank of Indore was merged with it.
SBI Chairperson Arundhati Bhattacharya said merger of SBI and its associate banks is a win-win for both the sides.
"Currently, no Indian bank features in the top 50 banks of the world. With this merger, some visibility at global level is likely to increase. Customers of associates and subsidiaries of the Bank will also be beneficiaries," she said.
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