Cabinet approves SBI's planned takeover of subsidiary banks

Zee Media Bureau

New Delhi: The Union Cabinet on Wednesday approved the the proposal of SBI to merge its five associate banks with itself and acquire Bharatiya Mahila Bank.

Last month, SBI Board had submitted a proposal to the government for merging its five subsidiaries and first women-oriented lender Bhartiya Mahila Bank with itself.

"This merger discussion is purely exploratory at this stage and is not certain. A proposal seeking an in-principle approval to start negotiations with associate banks will be submitted to the government," SBI had said in a statement issued after its board meeting last month.

SBI has 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.