New Delhi: The Union Cabinet has approved for merging the five associate banks of State Bank of India into itself. Commenting on the Cabinet decision, SBI Chairman Arundhati Bhattacharya said the merger will be a win-win for SBI and the associate banks. SBI’s network and reach would multiply, she said.
SBI already fully owns SBH and State Bank of Patiala, and has majority stakes in the other three. Bharatiya Mahila Bank started operations in 2013 and accounts for less than 0.1 per cent of SBI’s total assets. News of the Cabinet approval spurred a sharp rally, of as much as 20 per cent, in the shares of SBT, SBB&J and SBM, which hit their 52-week highs. State Bank of Patiala and SBH are not listed on the bourses.
Currently, no Indian bank features in the world’s top 50 banks, but following the merger, SBI, with assets worth $550 billion will come within striking distance.