In the largest consolidation exercise in the banking history of the country, all the five associate banks including – the State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH) will merge with State Bank of India from April 1.
Significantly, SBI would become a lender of global proportions with an asset base of Rs 37 trillion (Rs 37 lakh crore) or more than USD 555 billion. Apart from that, it will have 22,500 branches and 58,000 ATMs, with the union of all the five associates. Post the amalgamation, SBI will also have more than 50 crore customers.
Officers and staff of all the banks will become the employees of SBI after the merger, excluding the board of directors and executive trustees. SBI has almost 16,500 branches, including 191 foreign offices spread across 36 nations alone.
Earlier, the board of SBI agreed to the merger plan. The SBBJ shareholders will get 28 shares of SBI (Re 1 each) for each 10 shares (Rs 10 each) held, under the new development. Likewise, SBM and SBT shareholders will get 22 shares of SBI for each 10 shares. SBI had agreed for separate schemes of acquisition of State Bank of Patiala and State Bank of Hyderabad as they are already owned by SBI.
