05 August 2016 Current Affairs: The country's largest lender State Bank of India, which started the process of merging all its subsidiaries with itself about three months back, would become a single entity by April next, indicating the speed at which the administration is moving to revitalise the banking system.
State Bank will merge all its 5 subsidiaries : State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad with itself after the government gives its final approval to the merger in October this year.
SBI servers have been readied to host the associate banks and, when it happens, is likely to be the fastest merger ever, the official claimed. The bank will be adding one third of its current customer base of 300 million during the merger process.
When merged, the entity will be a banking behemoth with an asset base of Rs 37 lakh crore, a branch network of nearly 25,000 and 58,000 ATMs. That may be more than five times the country's second largest lender ICICI Bank.
Earlier in June, the government gave the go-ahead to the merger of State Bank of India (SBI) with its five associate lenders and Bharatiya Mahila Bank.
This also will enhance SBI's global ranking, which was at 52 globally in terms of assets in 2015, according to Bloomberg. A merger will help the lender find a place in the top 50 banks worldwide.