Cabinet okays merger of 5 associates along with BMB with SBI

Date: June 17, 2016

State Bank of Bikaner and Jaipur State Bank of Travancore State Bank of Patiala State Bank of Mysore

The Cabinet  gave its in-principle approval for State Bank of India’s proposal to bring its five associate banks into its fold. This comes barely a month after the SBI board had, on May 17, cleared a proposal to merge its five associate banks and Bharatiya Mahila Bank with itself.

The five associate banks are — State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.Among the 5 banks, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed.The merger will create Rs 37-lakh crore banking behemoth with over 50 crore customers.

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Policymakers want to recapitalise and consolidate the state banks so that they can extend fresh credit and help drive an investment-led recovery in Asia's third-largest economy that is now being buoyed by state and private consumption.