Cabinet likely to clear merger of SBICI with SBI tomorrow

The government is likely to consider merger of State Bank of India Commercial and International Bank Ltd (SBICI) with the country's largest lender SBI at the meeting of Union Cabinet tomorrow.

SBICI is a wholly owned subsidiary of SBI and functions as a private sector bank offering the an array of financial products and services.

Cabinet is likely to take-up acquisition of SBICI by its parent SBI, sources said.

The board of SBI had cleared amalgamation of SBICI with itself in 2008.

As of March 2011, the paid-up capital of subsidiary of SBI stood at Rs 100 crore while it earned a net profit of Rs 4.21 crore.

SBICI's capital adequacy ratio (CAR) stood at 28.16 per cent at the end of March 2011.

SBI has already merged two of its associates namely State Bank of Saurashtra and State Bank of Indore since 2008.

SBI's first ever amalgamation with its associate State Bank of Saurashtra took place in 2008 followed by State Bank of Indore in August last year.

SBI plans the consolidation of remaining five associate banks. SBI has five associate banks -- State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.

Among these, the State Banks of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed companies. (PTI)