The Merger of State Bank of India (SBI) with its five associate banks will come into effect from April 1, 2017.
According to the Reserve Bank of India, all branches of -
- State Bank of Bikaner and Jaipur (SBBJ)
- State Bank of Hyderabad (SBH)
- State Bank of Mysore (SBM)
- State Bank of Patiala (SBP) and
- State Bank of Travancore (SBT)
will function as branches of SBI from April 1, 2017.
Customers, including depositors of these five associate banks, will be treated as customers of SBI with effect from April 1, 2017, the RBI stated.
On February 22, 2017, the government had issued the Acquisition of State Bank of Bikaner and Jaipur Order 2017,
Acquisition of State Bank of Hyderabad Order 2017, Acquisition of State Bank of Mysore Order 2017, Acquisition of State Bank of Patiala Order 2017 and Acquisition of State Bank of Travancore Order 2017, the RBI said.
However, unions have opposed the move to close down branches consequent to the merger. “Closure of branches was nothing but curtailment of service to the local customers,” said K S Krishna, general secretary, SBT Employees Union.
“When the government and the bank management were propagating that there would not be any job losses on account of merger, bringing in VRS was an anti-employee measure,” Krishna said.
Meanwhile, the bank’s board meeting will also finalise issuance of equity shares to the shareholders of three of its listed subsidiaries, which will be merged with it along with two other unlisted associates from April 1, the bank said in a stock exchange filing.
The three listed associate banks are SBT, SBM and SBJB, while the two unlisted ones are SBH and SBP.
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