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SBI board clears merger of 5 associate banks, BMB with self

 PTI |  2016-08-19 00:45:01.0  |  New Delhi

SBI board clears merger of 5  associate banks, BMB with self

 "The central board of directors of SBI has accorded its approval to the scheme of acquisition of the State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and Bharatiya Mahila Bank Limited (BMBL) by the State Bank of India," SBI said in a regulatory filing to stock exchanges.

Later, in an update, it also approved separate schemes of acquisition of State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH) with SBI. As per the merger proposal, SBBJ shareholders will get 28 shares of SBI (Rs 1 each) for every 10 shares (Rs 10 each). Similarly, SBM and SBT shareholders will get 22 shares of SBI for every 10 shares. There will not be any share swap or cash outgo as SBH and SBP are wholly-owned by the SBI.

In the case of Bharatiya Mahila Bank, 4,42,31,510 shares of SBI will be swapped for every 100 crore shares of face value of Rs 10 each. As per the merger proposal, the pay and allowances of the staff of the merging bank will be protected and "shall not be less favourable overall as compared to what they would have drawn". Also, benefits of the retired employees will be protected, it said.

With merger of all the five associates and BMBL, SBI will become a global-sized bank and could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over $555 billion, with 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.

SBI has close to 16,500 branches, including 191 foreign offices spread across 36 countries. It first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged. 

ICICI goes live with banking transaction product on mobile phones
ICICI Bank on Thursday went live with a product that was showcased first at a start-up competition which allows customers to do banking transaction while using other application on mobile phones. Customers can transfer money, pay bills and recharge from within any application or browser using smartphone keyboard which will reduce transaction time, the bank said in a statement. 

The bank claimed that it is the first lender in Asia to offer such a product under the label of ‘iMobile SmartKeys’, which has been developed by one of the winners at the ICICI Appathon, its mobile app development challenge organised earlier this year, it said.

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