SBI gets board approval for merger of associate banks

State bank of India board at a meeting held on Thursday approved the merger of 3 associate banks and BMBL to create a banking giant. In a filing on BSE, the public sector lender said,”The Central Board of Directors of the State Bank of India have accorded their approval to the Scheme of Acquisition of State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and Bharatiya Mahila Bank Limited(BMBL) by State Bank of India (the Scheme) under Section 35 of the State Bank of India Act, 1955, subject  to approval of the Scheme by Reserve Bank of India and Government of India.

After the board approval,  State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and Bharatiya Mahila Bank Limited(BMBL) will be merged with the SBI. The government had given a go ahead to the merger with the SBI in June this year.

In July, dispelling the apprehension of bank employees, SBI chairperson Arundhati Bhattacharya has said that there is no reason for them to be apprehensive as there will be no losses of jobs or salaries in the process.

The SBI merger will create a giant entity with an asset base of Rs 37 lakh crore.

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

SBI stocks opened the day at 246.05 points and closed 0.79 per cent high at 248.20 points on Sensex, while on Nifty, its the scrip opened at 246.90 and ended the day 0.79 per cent up at 248.20 points.

The scheme provides for allotment of:

a. 28 equity shares of Rs 1 each of SBI for every 10 equity shares of Rs 10 each of SBBJ

b. 22 equity shares of Rs 1 each of SBI for every 10 equity shares of Rs 10 each of SBM

c. 22 equity shares of Rs each of SBI fvor every 10 equity shares of Rs 10 each of SBT

d. 4,42,31,510 equity shares of Rs 1 each of SBI for every 100 crore equity shares of Rs 10 each of BMML #casansaar (PTI - Zee)