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Cabinet nod for merger of BMB with SBI likely in 3 months

Union Cabinet has already given in-principle approval to the merger of BMB with State Bank of India

Press Trust of India  |  New Delhi 

SBI, state bank, state bank of India, bank
State Bank of India

The government is expected to give final approval to the merger of with the country's largest lender within three months.

The Cabinet last month approved amalgamation of five associates of with the parent but the merger of (BMB) was not considered due to some issues, sources said.



"Now it a is matter of time. The final approval from the Cabinet should come within three months," a source said.

The Union Cabinet has already given in-principle approval to the merger of with State Bank of India (SBI).

With the final approval, the first round of consolidation of public sector would be over.

According to sources, the next round of consolidation in the PSU would begin after these six lenders are integrated with

BMB, set up in 2013, has 103 branches with its presence in almost all the states.

The total business of the bank is about Rs 1,600 crore with Rs 1,000 crore of deposits and Rs 600 crore of advances, majority of which is retail business, according to the bank's website.

Integration process of all the five associates with would start from April 1 as part of the largest consolidation exercise in the banking history of India.

The assets of State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH) will be transfered to from April 1, 2017.

With the merger of all the five associates, is expected to become a lender of global proportions with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over USD 555 billion, 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.

Of the five subsidiary banks, SBBJ, and are listed.

The board of earlier approved the merger plan under which shareholders will get 28 shares of (Re 1 each) for every 10 shares (Rs 10 each) held. Similarly, and shareholders will get 22 shares of for every 10 shares.

The shares of the listed associates will be delisted from stock exchanges following the merger.

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Cabinet nod for merger of BMB with SBI likely in 3 months

Union Cabinet has already given in-principle approval to the merger of BMB with State Bank of India

Union Cabinet has already given in-principle approval to the merger of BMB with State Bank of India The government is expected to give final approval to the merger of with the country's largest lender within three months.

The Cabinet last month approved amalgamation of five associates of with the parent but the merger of (BMB) was not considered due to some issues, sources said.

"Now it a is matter of time. The final approval from the Cabinet should come within three months," a source said.

The Union Cabinet has already given in-principle approval to the merger of with State Bank of India (SBI).

With the final approval, the first round of consolidation of public sector would be over.

According to sources, the next round of consolidation in the PSU would begin after these six lenders are integrated with

BMB, set up in 2013, has 103 branches with its presence in almost all the states.

The total business of the bank is about Rs 1,600 crore with Rs 1,000 crore of deposits and Rs 600 crore of advances, majority of which is retail business, according to the bank's website.

Integration process of all the five associates with would start from April 1 as part of the largest consolidation exercise in the banking history of India.

The assets of State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH) will be transfered to from April 1, 2017.

With the merger of all the five associates, is expected to become a lender of global proportions with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over USD 555 billion, 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.

Of the five subsidiary banks, SBBJ, and are listed.

The board of earlier approved the merger plan under which shareholders will get 28 shares of (Re 1 each) for every 10 shares (Rs 10 each) held. Similarly, and shareholders will get 22 shares of for every 10 shares.

The shares of the listed associates will be delisted from stock exchanges following the merger.
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Business Standard
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Cabinet nod for merger of BMB with SBI likely in 3 months

Union Cabinet has already given in-principle approval to the merger of BMB with State Bank of India

The government is expected to give final approval to the merger of with the country's largest lender within three months.

The Cabinet last month approved amalgamation of five associates of with the parent but the merger of (BMB) was not considered due to some issues, sources said.

"Now it a is matter of time. The final approval from the Cabinet should come within three months," a source said.

The Union Cabinet has already given in-principle approval to the merger of with State Bank of India (SBI).

With the final approval, the first round of consolidation of public sector would be over.

According to sources, the next round of consolidation in the PSU would begin after these six lenders are integrated with

BMB, set up in 2013, has 103 branches with its presence in almost all the states.

The total business of the bank is about Rs 1,600 crore with Rs 1,000 crore of deposits and Rs 600 crore of advances, majority of which is retail business, according to the bank's website.

Integration process of all the five associates with would start from April 1 as part of the largest consolidation exercise in the banking history of India.

The assets of State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH) will be transfered to from April 1, 2017.

With the merger of all the five associates, is expected to become a lender of global proportions with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over USD 555 billion, 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.

Of the five subsidiary banks, SBBJ, and are listed.

The board of earlier approved the merger plan under which shareholders will get 28 shares of (Re 1 each) for every 10 shares (Rs 10 each) held. Similarly, and shareholders will get 22 shares of for every 10 shares.

The shares of the listed associates will be delisted from stock exchanges following the merger.

image
Business Standard
177 22