Union Cabinet approves merger of Five associate banks with SBI
The Union Cabinet has approved the merger of five associate banks with SBI (State Bank of India), including State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State bank of Patiala, State bank of Mysore and State Bank of Travancore.
The Proposed merger will create one of the largest lender of Asia and to among the top 50 global lender for the first time. The Merger proposal was announced in May 2016 and was scheduled for March 2017. This is the first move to consolidate the country’s struggling Public sector Bank.
Gvt Statement – “The merger is likely to result in recurring savings, estimated at more than Rs 1,000 crore in the initial year, through a combination of enhanced operational efficiency and reduced cost of funds,”.
State bank of India also boast of 22,500 branches and 58,000 ATMs post-merger. It has about 16,500 branches which includes 191 branches across world.