Associate banks to merge with SBI from April 1

New Delhi, February 23

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All five associates will merge with State Bank of India from April 1, in the largest consolidation exercise in the banking history of India.

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, SBI said in a regulatory filing. With the merger of all five associates, SBI is expected to become a lender of global proportions with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over $555 billion, 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.

Officers and employees, with the exception of the Board of Directors and executive trustees of the associate banks, will become employees of SBI following the merger.

Out of the five subsidiary banks, SBBJ, SBM and SBT are listed. The Board of SBI earlier approved the merger plan under which SBBJ shareholders will get 28 shares of SBI (Re 1 each) for every 10 shares (Rs 10 each) held. Similarly, SBM and SBT shareholders will get 22 shares of SBI for every 10 shares.

The shares of the listed associates will be delisted from stock exchanges following the merger.

SBI had approved separate schemes of acquisition of State Bank of Patiala and State Bank of Hyderabad. There will not be any share swap or cash outgo as they are wholly-owned by SBI.

According to the scheme of merger, the pay and allowances offered to employees or officers of the five associates will not be less than what they would have otherwise drawn. — PTI