Category: Others,
News Source: Others,
Updated-On: Aug 23 2016
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In an attempt to create global size bank, the board of State Bank of India approved scheme of merger of five associate banks and Bharatiya Mahila Bank (BMB) with itself while protecting the interest of the existing staff.
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SBI also approved the share swap ratio for merging three associates—State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM) and State Bank of Travancore (SBT)—and BMB. But the Swap ratios for State Bank of Hyderabad and State Bank of Patiala were not announced.
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The merger will create a banking mammoth of global scale with a balance sheet of Rs 37 trillion or over 555 billion US Dollar, making SBI as one of the top 50 global financial powerhouses.
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As per the merger proposal, SBBJ shareholders will get 28 shares of SBI for every 10 shares. Similarly, SBM and SBT shareholders will get 22 shares of SBI for every 10 shares and there will not be any share swap or cash outgo as SBH and SBP are wholly-owned by the SBI.
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In the case of Bharatiya Mahila Bank, 4,42,31,510 shares of SBI will be swapped for every 100 crore shares of face value of Rs 10 each. As per the merger proposal, the pay SBI Merging with 5 bank sand allowances of the staff of the merging bank will be protected and “shall not be less favorable overall comparatively.