The
Union Cabinet on Wednesday approved the merger of 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 as well as Bharatiya
Mahila Bank with State Bank of India, according to TV reports.Last month, SBI cleared
proposal for merger of subsidiary banks and Bharatiya Mahila Bank.
Arundhati Bhattacharya,
chairman, SBI said, “The merger of SBI and its associate banks is a win-win for
both. While the network of SBI would stand to increase, its reach would
multiply. One can expect efficiencies to be created from rationalisation of branches,
common treasury pooling and proper deployment of a large skilled resource base.
Currently, no Indian bank features in the top 50 banks of the world. With this
merger, some visibility at global level is likely to increase. Customers of
associates and subsidiaries of the bank will also be beneficiaries.”
Welcoming the move, State Bank
of Travancore MD CR Sasikumar told CNBC TV that it will be a great benefit
to the customer. He further added that he doesn’t see any issues on staff
integration.
Among the 5 banks, State Bank
of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are
listed.
Shares of State Bank of Mysore
closed 20 per cent up at Rs 547.90. State Bank of Travancore and State Bank of
Bikaner and Jaipur settled 19.99 per cent up each at Rs 478.90 and Rs 599.60,
respectively. Shares of State Bank of India surged 3.90 per cent to Rs 215.65,
whereas the BSE Bankex index advanced 1.38 per cent to 20,525.10.
The merger will create Rs
37-lakh crore banking behemoth with over 50 crore customers.
SBI first merged State Bank of
Saurashtra with itself in 2008. Two years later, State Bank of Indore was
merged.
SBI has maintained since then
that it would merge others as well but none of its moves fructified due to lack
of capital (which was pegged at least Rs 2,000 crore each for per bank) and
stiff opposition from employee unions.
Courtesy The Financial Express
No comments:
Post a Comment