Competition Commission of India approves merger of Bharatiya Mahila Bank with SBI

Dec 1, 2016 11:08 IST

The Competition Commission (CCI) in the last week of November 2016 approved the merger of Bharatiya Mahila Bank Ltd (BMBL) with the country's largest lender State Bank of India (SBI).

Summary of the deal

The combination is in the form of amalgamation whereby the business of BMBL, including its assets and liabilities, will be acquired by SBI.

While SBI has global presence, including offices in 37 countries, BMBL is a nascent bank set up in November 2013.

In the case of BMBL, 44231510 shares of SBI would be swapped for every 100 crore shares of face value of Rs. 10 each.

Post merger of the six entities, including BMBL, the consolidated entity will add Rs. 8 lakh crore to SBI's assets.

3 months Supplement CA

Background

On 17 May 2016, the SBI had informed the Bombay Stock Exchange that it is seeking in-principle sanction of the Union Government to enter into negotiation with its 5 subsidiaries and Bharatiya Mahila Bank for acquisition.

The five subsidiaries are :
1. State Bank of Bikaner and Jaipur
2. State Bank of Hyderabad
3. State Bank of Mysore
4. State Bank of Patiala
5. State Bank of Travancore

SBI first merged associate State Bank of Saurashtra with itself in 2008. Two years later, in 2010, State Bank of Indore was merged.

The board of SBI had cleared the merger of BMBL and that of five associate lenders with itself in August 2016.

Is this article important for exams ? Yes19 People Agreed
Read more Current Affairs on: SBI , Bharatiya Mahila Bank , State Bank of India

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