SBI-Associate Banks Mergered


State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT), besides Bharatiya Mahila Bank (BMB), merged with State Bank of India (SBI), the country's largest lender,  with effect from April 1, 2017. The BMB was created by the UPA government in 2013, and is a Delhi-based public sector lender, with Rs 1,000 crore in capital. In SBI the government has a 61.32% stake.

Earlier too, SBI has merged two of its erstwhile associate banks with itself - Bank of Saurashtra in 2008 and State Bank of Indore in 2010.

With this merger, the SBI  joined the league of top 50 banks globally in terms of assets. The combined entity ranked as the 45th largest bank globally in terms of assets, up 7 ranks from its current 52nd position.

The total customer base of the bank has reached 37 crores with a branch network of around 24,000 and nearly 59,000 ATMs across the country. The merged entity  have a deposit base of more than Rs 26 lakh crore and advances level of ₹18.50 lakh crore. The merger has created a financial behemoth with assets worth Rs 37 lakh crore ($550 billion), including the fixed assets of associate banks worth about Rs 4,000 crore. 
Lok Sabha Passed the Bill

The Lok Sabha in August 2017 passed the bill to repeal the SBI (Subsidiary Banks) Act 1959, State Bank of Hyderabad Act 1956 and to further amend the State Bank of India Act, 1955, following the merger of five associates with the parent SBI.

According to the statement of object and reasons of the State Banks (Repeal and Amendment) Bill 2017, after the acquisition of the subsidiary banks by SBI, the subsidiary banks have ceased to exist and, therefore, it is necessary to repeal the State Bank of India (Subsidiary Banks) Act, 1959 and the State Bank of Hyderabad Act, 1956.  These Acts established the State Bank of Bikaner, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore, and State Bank of Hyderabad. 

 The Bill seeks to amend the State Bank of India Act, 1955 to remove references related to subsidiary banks.  These references include: (i) the definition of a subsidiary bank in the 1955 Act, and (ii) powers of SBI to act as an agent of the RBI for a subsidiary bank.

Monday, 14th Aug 2017, 04:59:40 AM

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