The Reserve Bank of India (RBI) in its release on 20 March 2017 said, “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 State Bank of India from 1 April 2017.
The release said that customers including depositors of all these associate banks will be treated as customers of the State Bank of the India from 1 April 2017.
Earlier in February 2017, the proposed merger of the five subsidiaries of the State Bank of India (SBI) with the bank was approved by the Union Cabinet. For this purpose, the union government also issued acquisition orders of these banks. The acquisition orders for these banks were
• Acquisition of State Bank of Bikaner and Jaipur Order 2017
• Acquisition of State Bank of Travancore Order 2017
• Acquisition of State Bank of Patiala Order 2017
• Acquisition of State Bank of Hyderabad Order 2017
• Acquisition of State Bank of Mysore Order 2017
The orders dated 22 February 2017 issued by the Union Government were published under Extraordinary Part II-Section 3-Sub-section (i) in the Gazette of India sanctioning the Acquisition of State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore by State Bank of India in terms of sub-section (2) of Section 35 of the State Bank of India Act, 1955 (23 of 1955).
Effects of the merger
• With this merger, SBI will turn up to be a lender of global proportions.
• Its asset base after the merger with its associate banks will be about Rs 37 lakh crore (about Rs 37 trillion or USD 555 billion).
• It will have 22500 branches and 58000 ATMs across India and the world.
• This number of branches and ATMs will help the bank in handling its customer base which will be more than 50 crores in numbers.
• Post merger, the employees of all associate banks, with exceptions, will become employees of SBI. Exceptions will be of the board of directors and executive trustees of the associate banks.
Competition Commission of India approves merger of Bharatiya Mahila Bank with SBI
At present, SBI has about 20000 branches of which 191 are foreign offices across 36 countries. Of the five subsidiary banks, only SBBJ, SBM and SBT are listed.
Besides, the union government on the day of RBI’s notification announced that the Bharatiya Mahila Bank will also be merged with SBI.
DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.