Cabinet approves merger of five subsidiaries of State Bank of India

New Delhi: The Union Cabinet on Wednesday approved merger of five subsidiaries of State Bank of India with the state-owned lender, though no decision on merging Mahila Bank with SBI has been taken as yet.

"The Cabinet had earlier in-principle cleared the (merger) proposal. It had gone to the boards of various banks which have granted the approvals. The recommendations of the boards were considered today and the Cabinet cleared the proposal," Finance Minister Arun Jaitley said.

The associate banks which will be merged with SBI are: State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH).

As per the swap ratio, SBBJ shareholders would get 28 shares of SBI (Rs 1 each) for every 10 shares (Rs 10 each).

Similarly, SBM and SBT shareholders would get 22 shares of SBI for every 10 shares.

SBI has around 16,500 branches, including 191 foreign offices spread across 36 countries. Globally, SBI will come at the 45th position in terms of asset size after the merger.

SBI first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged.

With PTI Inputs