State Bank of India (SBI) will merge its five associate banks with itself from April 1, in the largest consolidation exercise in the banking history of India.
State Bank of India (SBI) will merge its five associate banks with itself from April 1, in the largest consolidation exercise in the banking history of India.
After the government notified April 1 as the effective date of merger, SBI today said in a regulatory filing, “The assets of State Bank of Bikaner and Jaipur (SBBJ),State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH) will be transferred to SBI from April 1,2017.”
Merging of another state-run lender Bhartiya Mahila Bank into SBI hasn’t been finalised yet.
With the merger of all the five associates, SBI is expected to become one of the top 50 banks in the world with a balance sheet size of over Rs 32 lakh crore (about USD 500 billion), 22,500 branches and 58,000 ATMs. It will have a customer base of over 50 crore.
Following the SBI merger, officers and employees, with the exception of the board of directors and executive trustees of the associate banks, will become employees of SBI.
SBI will soon start the process of data integration, streamlining its IT (information technology) platform, rationalise 20 percent of its branches, integrate its five treasury operations into one and getting the employees on the SBI payscale among other things. The integration should be completed in the first half of FY18.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
No comments:
Post a Comment