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| State Bank of Indore merger with SBI to begin by Aug 26 |
| Press Trust of India / Mumbai Jul 28, 2010, 22:19 IST |
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The country's largest lender, State Bank of India (SBI), today said it will start the merger process of State Bank of Indore with itself from August 26.
The entire undertaking of State Bank of Indore shall be transfered to and vested in State Bank of India from August 26, SBI informed the Bombay Stock Exchange (BSE).
The government has issued the 'Acquisition of State Bank of Indore order 2010' dated July 28, 2010 and in terms of said order the process of amalgamation would begin from the 30th day from the date of order that is August 26, it said.
Last year, the central board of SBI gave approval for the merger. Following this, the Centre also gave an in-principle approval. SBI holds a 98 per cent stake in State Bank of Indore.
SBI has already announced a share swap ratio of 34:100 for the merger. It has agreed to give 34 shares of SBI for every 100 shares of State Bank of Indore held by minority shareholders.
For this purpose, SBI would issue up to over 1.16 lakh shares of face value of Rs 10 each to minority shareholders of State Bank of Indore.
SBI had also said the issued capital of SBI would increase from Rs 634.96 crore up to a maximum of Rs 635.08 crore, subject to approval of the scheme of acquisition of State Bank of Indore by the government.
Following the merger, SBI will be left with 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. Among these, the State Banks of Bikaner and Jaipur, Mysore and Travancore are listed companies.
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