INDIA’S government last Wednesday (15) approved the merger of State Bank of India (SBI) and its associate lenders in move that will make the state-owned lender a global- sized bank.
SBI has five associate lenders – State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
The SBI bank, India’s largest lender, had last month pro- posed the merger of its five sub- sidiary banks with itself and the acquisition of the new Bharatiya Mahila Bank.
SBI chairperson Arundhati Bhattacharya said the merger would benefit the bank.
“Currently, no Indian bank features in the top 50 banks of the world. With this merger, some visibility at global level is likely to increase. Customers of associates and subsidiaries of the bank will also be beneficiaries,” she said.
The merged entity will become a banking behemoth that could compete globally.with over 500 million customers.
SBI will have to close 16,500 branches, including 191 foreign offices based in 36 countries.