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Cabinet approves merger of SBI associate banks

News Updates 16 June 2016_html_m65e49280The union cabinet has approved the merger of State Bank of India with its five associate banks and the Bharatiya Mahila Bank. SBI had formally proposed the merger in May bringing the five associate banks – State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad, although the merger proposition has been pending for long. The merger is expected to create a banking behemoth with some 50 crore customers and asset base of Rs 37 lakh crore. The chairman of SBI, Arundhati Bhattacharya, said in a statement the merger is a win-win for both. She said while the network of SBI would stand to increase, its reach would multiply and one can expect efficiencies to be created from rationalization of branches, common treasury pooling and proper deployment of a large skilled resource base. Currently, no Indian bank features in the top 50 banks of the world, but with this merger, she said some visibility at global level is likely to increase. Another aspect pointed out by her was that any introduction of new technology by SBI would simultaneously be available uniformly. Meanwhile, the All India Bank Employees Union reiterated that it is against the merger and will hold a special meeting of office bearers to decide on its future course of action.

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