Centre approves SBI's proposal for merging 5 associates

16 Jun 2016 | Written by Ramya ; Edited by Mansi Motwani

The Union Cabinet has given its approval for the proposed State Bank of India's merger to bring five of its associates into its fold.

The decision comes a month barely after the SBI board had cleared the merger proposal.

SBI Chief Arundhati Bhattacharya stated that the merger would be beneficial for SBI and its associates as the bank's reach, and the network would multiply.

In context: SBI's banking merger

18 May 2016Five subsidiaries to merge with SBI

After nudging India's largest lender-State Bank of India to consider merging its associates, the government kick-started the bank consolidation process with it.

SBI might merge its five associates-State Bank of Hyderabad, State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala, and Bharatiya Mahila Bank with itself.

The government holds a stake of 61.32% in SBI.

No job cuts: RBI Dty Governor

Following the bank employees' protests, RBI Deputy Governor–SS Mundra said, “All these fears about job losses are without any base. Whenever such situation arises, there are doubts and fears. But slowly, as the dialogue goes on, there will be clarity on it."
Love Business news?
Stay updated with the latest happenings.

16 Jun 2016Centre approves SBI's proposal for merging 5 associates

Previous mergers of SBI

State Bank of India had merged two of its associate banks with itself. Bank of Saurashtra and State Bank of Indore were merged with SBI in 2008 and 2010 respectively.
SBI merger approved by Cabinet

16 Feb 2017SBI merger approved by Cabinet

The cabinet approved the merger of State Bank of India (SBI) with five associate banks.

State Banks of Bikaner and Jaipur (SBBJ), of Hyderabad (SBH), of Mysore (SBM), of Patiala (SBP) and of Travancore (SBT) will merge with SBI.

This merger will provide SBI with an asset base of Rs. 37 trillion, 22,500 branches, 58,000 ATMs and over 50 crore customers.

24 Feb 2017SBI to merge with 5 associate banks on April 1

On April 1, 2017, the State Bank of India (SBI) will officially merge with five associate banks - State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Hyderabad (SBH) and State Bank of Patiala (SBP).

Shares of these banks would then be transferred to SBI, which will be among world's top-50 large banks.

Love Business news?
Stay updated with the latest happenings.

21 Mar 2017Bharatiya Mahila Bank to be merged with SBI

As part of the government's consolidation-reforms, the Bharatiya Mahila Bank (BMB), launched in 2013, is all set to be merged with State Bank of India from April 1.

The move would bring 103 branches of the BMB and its business of Rs. 2,000cr into the folds of the SBI.

BMB employees, who had joined on deputation, will be transferred back to their previous banks.

14 Apr 2017SBI merger: HC halts plans over subsidiary officers' concerns

Putting a halt on SBI's palnned merger with five subsidiary banks, Hyderabad HC directed it not to decide on options suggested by subsidiary officers till June 15.

Employees of subsidiary banks said they were given little time to offer options, and are apprehensive they won't be treated at par with SBI employees.

Counsel argued SBI had given no clarity on the new working conditions.