First move to consolidate PSBs: Union cabinet approved merger of 5 associate banks and Mahila Bank with SBI

In a first move to consolidate the public sector banks, Union Cabinet approved on Wednesday,  the merger of five of SBI’s associate banks viz. State Bank of Travancore (SBT), State Bank of Mysore (SBM), State Bank of Bikaner & Jaipur (SBBJ), State Bank of Patiala (SBP), State Bank of Hyderabad (SBH) and Mahila Bank with the SBI.The merger will see SBI’s asset book grow up to Rs.37 lakh crore. Bank’s deposits and advances may reach 21 lakh crores and 17.5 lakh crores respectively.

Taking forward the consolidation agenda, State Bank of India (SBI) board today (August 18, 2016,) approved share swap ratio to merge five associate banks and Bharatiya Mahila Bank (BMB) with itself. Share- holders of associate banks will get the shares of SBI as under.

For every 10 shares of SBT, the shareholders will get 22 shares of SBI.

For every 10 shares of SBM, the shareholders will get 22 shares of SBI.

For every 10 shares of SBBJ, the shareholders will get 28 shares of SBI.

For every 10 shares of SBM, the shareholders will get 22 shares of SBI.

SBI is holding 100% stake in unlisted State Bank of Patiala and State Bank of Hyderabad.