Friday, Apr 26, 2024 | Last Update : 11:29 AM IST
SBI okays merger of listed associate banks
In a bid to create global size bank, the board of State Bank of India on Thursday approved scheme of merger of five associate lenders and Bharatiya Mahila Bank (BMB) with itself while protecting the i
In a bid to create global size bank, the board of State Bank of India on Thursday approved scheme of merger of five associate lenders and Bharatiya Mahila Bank (BMB) with itself while protecting the interest of the existing staff.
“The central board of directors of SBI has accorded their approval to the scheme of acquisition of the State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and Bharatiya Mahila Bank Limited ( BMBL) by the State Bank of India,” SBI said in a BSE filing on Thursday.
The proposal does not include merger of State Bank of Patiala and State Bank of Hyderabad with State Bank of India.
As per the merger proposal, SBBJ shareholders will get 28 shares of SBI (Rs 1 each) for every 10 shares (Rs 10 each).
Similarly, SBM and SBT shareholders will get 22 shares of SBI for every 10 shares.
In the case of Bharatiya Mahila Bank, 4,42,31,510 shares of SBI will be swapped for every 100 crore of Rs 10 each.
Last month, the Union Cabinet had cleared merger of all the five associate banks of SBI with the parent and acquisition of BMBL.
With merger of all the five associates and BMBL, SBI will become a global-sized bank and could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over $555 billion, with 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.
SBI has close to 16,500 branches, including 191 foreign offices spread across 36 countries.
It first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged.
On Thursday, the SBI stock closed at Rs 248.20, up 0.79 per cent on BSE.
SBBJ shares ended the day at Rs 673.30 a piece, up 3.49 per cent while those of SBM were up 2.06 per cent at Rs 621.70. State Bank of Patiala and State Bank of Hyderabad are not listed.
As per the proposal, the pay and allowances of the staff of the merging bank will be protected and “shall not be less favourable overall as compared to what they would have drawn.”
