Govt okays merger of SBI, associate banks

Seeking to create a global sized bank, the government on Wednesday gave go ahead to the merger plan of SBI and its five associate banks but did not take a decision with regard to Bharatiya Mahila Bank.

"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. 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).