Five associate banks of SBI and the Bharatiya Mahila Bank (BMB) were on 1 April 2017 merged with the State Bank of India (SBI).
These five associate banks that were merged with the SBI are -
i. State Bank of Bikaner and Jaipur
ii. State Bank of Hyderabad
iii. State Bank of Mysore
iv. State Bank of Patiala
v. State Bank of Travancore
The merger of these five associate banks with SBI was approved by the Union Government in February 2017. Later in March 2017, the Union Cabinet approved merger of BMB as well.
• With this merger, SBI will join the league of top 50 banks globally in terms of assets. Currently, no Indian bank features in the top 50 banks of the world.
• The total customer base of the SBI will now reach to 37 crore people with a branch network of around 24000 and nearly 59000 ATMs across the country. The merged entity will have a deposit base of more than Rs 26 lakh crore and advances level of Rs 18.50 lakh crore.
• Soon, the bank will rationalise its branch network by relocating some of the branches to maximise reach. This will help the bank in optimising its operations and improve its profitability.
• Integration of treasuries of the associate banks with the treasury of SBI will bring in substantial cost saving and synergy in treasury operations.
SBI first merged State Bank of Saurashtra with itself in 2008. Later in 2010, State Bank of Indore was merged with it.
SBI has close to 16500 branches, including 191 foreign offices across 36 countries while the five subsidiaries have nearly 6000 branches.
What: Merged with SBI
When: 1 April 2017