SME Times is powered by   
Search News
Just in:   • After 1,460 days of Modi rule, 'achhe din' yet to come, feel experts  • 8 reasons why credit cards make small business financing simpler  • SIDBI, CSC sign MoU to help village entrepreneurs  • PNB fraud: ED charge-sheet names Nirav, 23 others  • Wheat prices rise on import duty hike 
Last updated: 16 Feb, 2017  

SBI.9.Thmb.jpg Cabinet nod for merging SBI with 5 associate banks

Arun Jaitley
   Top Stories
» SIDBI, CSC sign MoU to help village entrepreneurs
» India CLMV Business Conclave held, focus on SMEs
» Dutch PM inaugurates Indo-Dutch Ganga Forum
» 15th Finance Commission forms group for health sector
» Govt releases strategy paper on software, electronics exports
SME Times News Bureau | 16 Feb, 2017
The Union Cabinet on Wednesday approved the merger of State Bank of India and its five associate banks, Finance Minister Arun Jaitley announced in New Delhi.

"The cabinet approved the merger into SBI of its five subsidiaries, namely, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Travancore, State Bank of Mysore and State Bank of Patiala," Jaitley told reporters following the cabinet meeting.

"The merger will lead to far greater operational efficiency and synergy of operations within these banks," he said.

"Obviously, with greater efficiency if cost of operations are reduced, the cost of funds will also come down," he added.

The Finance Minister said the merged entity will create a banking behemoth, "a very large bank, not only from the domestic point of view but also globally".

SBI is the country's largest lender with about 16,500 branches, including 191 foreign offices spread across 36 countries.

"The merger is likely to result in recurring savings, estimated at more than Rs 1,000 crore in the first year, through a combination of enhanced operational efficiency and reduced cost of funds," a cabinet communique said.

"Existing customers of subsidiary banks will benefit from access to SBI's global network. The merger will also lead to better management of high value credit exposures through focused monitoring and control over cash flows instead of separate monitoring by six different banks," it added.

Jaitley said the proposed merger of Bhartiya Mahila Bank into SBI is still under consideration and the cabinet did not take a decision on the matter on Wednesday.

Last year, SBI had announced that it would merge its five subsidiaries and Bharatiya Mahila Bank on receipt of government approval for the same.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 26 May, 2018
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(19)
» Oil, Rupee concerns(6)
» Year End Review 2016: Report card of MSME Ministry(2)
» Modi chairs twenty-sixth interaction through PRAGATI (1)
» Kalam releases handbook for small entrepreneurs(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter