Five State Banks, Bharatiya Mahila Bank merge with SBI
Five associates and the Bharatiya Mahila Bank have officially merged with country’s largest lender State Bank of India (SBI). With this merger, SBI joins the league of top 50 banks globally in terms of assets.
The five associate banks are: State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore.
- With this merger, SBI’s market share has increased to 22.5-23% from 17% with total business of over 37 lakh crore rupees.
- The merged entity now has a deposit base of more than Rs. 26 lakh-crore and advances level of Rs 18.50 lakh crore accounting for one-fourth of the deposit and loan market in the country .
- SBI now has 2.77 lakh employees, 50 crore customers and more than 25,000 branches and 58,000 ATMs. Its total customer base of the SBI now has reached to 37 crore across the country.
- Post-merger, all the customers of associate banks will now enjoy the benefits of a wide array of digital products and services offered by SBI.
The merger will help SBI to rationalise its branch network by relocating some of the branches to maximise reach. This will also help to optimise its operations and improve profitability. It will also bring in substantial cost saving and synergy in treasury operations. Moreover, the combined entity will enhance the productivity, mitigate geographical risks, increase operational efficiency and drive synergies across multiple dimensions of the SBI.