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Bharatiya Mahila Bank merger with SBI cleared

Category: Financial Services,  News Source: Others,  Updated-On: Dec 1 2016
After SBI has merged two of its associates Banks -- State Bank of Saurashtra in 2008 and State Bank of Indore in 2010 -- with itself.
 
In August 2016, the board of SBI cleared the merger of Bharatiya Mahila Bank and that of five associate lenders with itself. The Competition Commission of India (CCI) has approved the merger of Bharatiya Mahila Bank with the country's largest lender State Bank of India.
 
"Both the banks offer various banking products to their retail and corporate customers. However, while SBI has made deep inroads into the interiors of the country, BMBL has only a token presence with 4-5 branches in each state," the summary said.
 
Besides, SBI is to merge five associate lenders — 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) — with itself.
 
The banking behemoth will have a network of more than 24,000 branches, 2,70,000 employees and total assets of Rs 30 lakh crore
 
As per the deal, the combination is in the form of an amalgamation whereby the business of BMBL, including its assets and liabilities, will be acquired by the SBI. While the SBI has global presence, BMBL is a nascent bank set up in November 2013.
 
In the case of BMBL, 4,42,31,510 shares of SBI would be swapped for every 100 crore shares of face value of Rs 10 each.
 
Post merger of the six entities, including BMBL, the consolidated entity will add Rs 8 lakh crore (about $120 billion) to SBI's assets.
 
SBI has started the process of change of account number due to proposed merger of associate banks. 
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