The State Bank of India has formally approved the share swap ratios for the merger of five associate banks and Bharatiya Mahila Bank with itself. The bank’s board approved the scheme of acquisition, SBI said in a notice to the stock exchanges. It said it will issue 28 shares of Rs 1 each for 10 shares of Rs 10 each for the State Bank of Bikaner and Jaipur, and 22 shares for 10 shares of the State Bank of Mysore. Similarly, shareholders of State Bank of Travancore will also get 22 shares in SBI for every 10 shares held by them in SBT. The bank will also issue 44.2 million shares to the government for one billion shares of Bharatiya Mahila Bank. In the case of the unlisted State Bank of Patiala and State Bank of Hyderabad, in which SBI holds 99% shares, it would be a case of line-by-line merger. All shares held by SBI in the five associate banks will stand cancelled after merger. The bank is expected to send the merger scheme to the Reserve Bank of India for approval. The bank is planning to consolidate operations and balance sheets by March 2017.
