Merger of State Bank of India (SBI) with its five subsidiaries come into effect on 1st April, 2017
New Delhi: The Cabinet in its meeting on 15th February, 2017 has approved the proposal of acquisition of subsidiary banks of State Bank of India (SBI) i.e. State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore with State Bank of India. It shall come into effect on 1st April, 2017. The merger is aimed at economies of scale and operational efficiency leading to improved supervision process, compliance and productivity in addition to better risk management.
Detailed plans have been chalked out for re-organisation of SBI network including branches of the Associate Banks.
The aggregation of credit exposures by six entities and its oversight by one entity, post merger, imparts focus and helps in better management of the overall credit portfolio especially stressed assets.
Unified operations and efficiency improves productivity, customer service and profitability.
The existing customers of Subsidiary Banks will have access to SBI global network which has presence in all the time zones.
This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.