SBI Waits For RBIs Nod On Merger Of Associate Banks

RBI is expected to give State Bank of India, the approval

for the detailed merger plan of its associate banks. The
approval from the central bank is expected anytime soon.
The strategy of acquisition of all five associates along with
the Report of the Expert Committee has been submitted to
RBI for approval. Upon approval, RBI is going to submit
the scheme of acquisition as approved by it to the
Government of India for approval and issue of order of
acquisition.
On the other hand, SBI has initiated the process of change
of account number because of the suggested merger of
associate banks. Previously the government cleared the proposal to merge SBI with its five
associate banks, namely State Bank of Travancore, State Bank of Bikaner and Jaipur, State
Bank of Mysore, State Bank of Patiala, State Bank of Hyderabad and the new Bharatiya
Mahila Bank (BMB).
During August, SBI mentioned that all its associate banks along with BMB will be merged
into it and that will add an extra Rs 8 lakh crore to its assets, making it a banking behemoth
having total assets of Rs 30 lakh crore, a rise of about 36 per cent. With the merger of all the
five associates and BMB, SBI will turn into a global-sized bank and could compete with the
largest in the world, boasting of 22,500 branches and 58,000 ATMs. It will have over 50
crore
customers.
SBI has already merged two of its associates, State Bank of Saurashtra in 2008 and State
Bank of Indore in 2010 with itself. Last week, SBI Chairperson Arundhati Bhattacharya
announced that the merger of associate banks with SBI itself is advancing and
demonetization
did
not
affect
it.
Also, the State Bank of India's digital transaction platforms are all set to tackle much higher
transactions than the average level and post demonetization the channel has witnessed
quantum jump in transactions. Speaking to the media in Coimbatore recently, SBI
Chairperson Arundhati Bhattacharya declared that after demonetization the bank's Point of
Sale (PoS) transactions have seen 200 per cent jump by value and 300 per cent volume wise

increase,

showing

that

digital

transactions

are

on

the

rise.

As the trading session commenced on 28th Nov, SBI share price dipped by 4 per cent. The
stock
is
trading
at
Rs.
251.60
(down
by
9
points).
SBI is one of the top 500 performing stocks for this quarter as identified by Dynamic Levels.

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Article Written by
Madhurima Chowdhury