State Bank of India (SBI) will not need fair trade
regulator Competition Commission of India (CCI)’s approval for merging 5
associates and Bhartiya Mahila Bank (BMB) with itself, a move that will
create a global sized bank with an asset base of Rs. 30 lakh crore.
The acquisition is exempt from the approval of CCI under the Competition Act 2002.As per the amendment to the Competition Act, consolidation in the banking sector space is exempt from the approval of CCI
Last week, the board of SBI approved scheme of merger of
five associate lenders State Bank of Bikaner & Jaipur (SBBJ), State
Bank of Mysore (SBM), State Bank of Travancore (SBT) and Bharatiya
Mahila Bank (BMB) with itself while protecting the interest of the
existing staff.
The consolidated entity will add Rs. 8 lakh crore (about USD 120 billion) to SBI’s assets and consolidated entity will get catapulted into the top 50 banks globally.
The
bank has taken a big step towards the first-ever large scale
consolidation in the Indian banking sector by deciding to merge all its
associate and BMB to create a banking behemoth with a network of more
than 24,000 branches, 2,70,000 employees and total assets of Rs. 30 lakh crore, an increase of 36 per cent.
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