Cabinet clears merger of SBI, five associate banks

Tribune News Service

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New Delhi, February 15

In a major step towards creating bigger public sector banks through consolidation and gaining global scale, the Union Cabinet today approved the merger plan of SBI and its five associate banks but did not take a decision with regard to Bharatiya Mahila Bank.

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).

“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.

He said with this merger, the SBI will also become a very large bank, not merely from a domestic point of view but actually a global player in its very size.

On the proposal to merge Bharatiya Mahila Bank with SBI, Jaitley said, “It is under consideration as of now. We have not taken any decision related with that today.”