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Arun Jaitley introduces bill to repeal SBI Subsidiary Banks Act

This was followed by the merger of five associates with parent SBI

Press Trust of India  |  New Delhi 

Finance Minister Arun Jaitley
Finance Minister Arun Jaitley

Minister on Friday introduced a bill to repeal (Subsidiary Banks) Act and State of Act following the of five associates with the parent

"After the of the subsidiary banks by SBI, the subsidiary banks have ceased to exist and, therefore, it is necessary to repeal the of (Subsidiary Banks) Act, 1959 and the State of Act, 1956," the statement of object and reasons of the State Banks (Repeal and Amendment) Bill 2017 said.

Five associates and the Bharatiya Mahila became part of of (SBI) beginning April 1, catapulting the country's largest lender to among the top 50 banks in the world.

The five associates that were merged are State of Bikaner and (SBBJ), State of (SBH), of Mysore (SBM), State of Patiala (SBP) and of Travancore (SBT).

Following the merger, the total customer base of increased to 37 crore with a branch network of around 24,000 and nearly 59,000 ATMs across the country.

The merged entity began operation with a deposit base of more than Rs 26 lakh crore and advances level of Rs 18.50 lakh crore.

There are certain provisions in the of Act, 1955, which apply to the subsidiary banks, the bill said.

"After the of all the subsidiary banks by the SBI, it is not necessary to retain such provisions in the of Act, 1955. Therefore, certain amendments are necessary in the said Act in so far as they relate to the subsidiary banks. The amendments are consequential in nature," it said.

It further said the SBBJ, SBM, SBP and SBT were constituted under the of (Subsidiary Banks) Act, 1959 while the SBH was originally constituted as State under the State Act, 1350F and renamed as the State of under sub-section (1) of section 3 of the State of Act, 1956.

The State of and the State of Patiala were wholly-owned by the of (SBI). had 90 per cent shareholding in the State of Mysore, 75.07 per cent shareholding in the State of Bikaner and and 79.09 per cent shareholding in the State of Travancore, it said.

First Published: Fri, July 21 2017. 21:48 IST