SBI has already approved merger of its associate banks and Bhartiya Mahila Bank. Here are some facts about the merger and position of SBI post merger:
Banks which will be merged with SBI:
State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Patiala and Bhartiya Mahila Bank.
- Biggest merger/ consolidation in Indian Banking Industry.
- Gross NPA of five associate Banks are 9.14% for quarter ending June 16.
- Gross NPA of SBI are 6.94% for quarter ending June 16.
- 5 Associate Banks of SBI reported a loss of Rs.2018 crore for the quarter ending June 16.
- Standalone profit of the SBI for the quarter ending June 16 is Rs.2521 crore
Position of SBI post merger:
- SBI will be in legue of Top 50 banks in world.
- Post Merger Asset base of SBI will be 37 lac crores
- SBI’s asset base will be 5 times of ICICI Banks’s asset base
- SBI’s branch network is presently 14000+, which will increase to 21000+
- SBI has presently around 2.94 lacs employees, which will increase to around 3.68 lacs.
- Employees of associate banks will get 15 days to decide to accept a new job with the State Bank of India or opt for voluntary retirement via an ‘option letter’
- SBI will issue its shares to the shareholders of merged banks.