19 August 2016 Current Affairs: State bank of India, the country's largest lender, approved the merger of its operations with five of its associate banks.
Post approval, State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Patiala and Mahila Bank will stand merged with SBI. Earlier in June, the government gave the go-ahead to the merge SBI with its five associate lenders and Bharatiya Mahila Bank .Here are eight things you should know about the merger:
1) This is the first ever large-scale consolidation in the Indian banking industry.
2) The merger will create a banking behemoth with an asset book of Rs 37 lakh crore.
3) SBI will give 28 of its shares for every 10 shares held of State Bank of BikanerBSE 2.14 % and Jaipur.
4) It will give 22 of its shares for every 10 shares held of State Bank of Mysore.
5) The lender will give 22 of its own shares for every 10 shares held of State Bank of Travancore.
6) SBI will give 4,42,31,510 shares with face value of Re. 1 for every 100 crore equity shares of Bhartiya Mahila Bank.
7) The merger will see SBI's ranking approve in the Bloomberg's largest bank by asset ranking. It may well break through the 50-mark in the ranking.
8) SBI's asset base will now be five times larger than the second-largest Indian bank, ICICI Bank