JOIN USThe Lok Sabha on Thursday passed a bill that will approve merger of some associate banks with the State Bank of India (SBI) with the government, saying that it will lead to increased capital base of the largest public sector lender.
"The merger will bring about increased capital base and increased ability to give loans. Also, small banks will get access to products like mutual funds," Minister of State for Finance Santosh Gangwar said as the House passed the bill to repeal the SBI (Subsidiary Banks) Act 1959, State Bank of Hyderabad Act 1956 and to further amend the State Bank of India Act, 1955 following the merger of five associates with the parent SBI.
Gangwar said that post the merger, SBI has entered the list of top 50 banks globally.
State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT) merged with SBI on April one along with the Bharatiya Mahila Bank.
This increased the total customer base of SBI to 37 crore, a deposit base of Rs 26 lakh crore, a branch network of around 24,000 and nearly 59,000 ATMs.
SBI had 90% shareholding in SBM, 75.07% in the SBB and SBBJ and 79.09% in the SBT. Ganwar also said that no bank branch will be closed down as part of the merger instead more branches will open.