In first of its kind steps, largest lender in the country, the State Bank of India / SBI has started the merger of its 5 associate banks.
SBI Board members met on Tuesday and finally decided to merge all the associate banks. This merger will help the bank in numerous ways.
5 banks which are to be merged with SBI are –
State Bank of Bikaner and Jaipur
State Bank of Hyderabad
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Further Steps to Merge Associate Banks of SBI
Arundhati Bhattacharya, Chairperson of SBI informed that the merger proposal will be submitted to the Central Government.
However, this merger would be done in a phased manner although all the banks are using the same technology. Measures would also be taken so that there is no trouble to anyone.
This merger comes after the government spoke about Bank Consolidation in the Budget.
Merger of State Bank of India with its associates aims at funding the infrastructure requirements. Furthermore, there is no Indian bank that is in the top 50 banks of world, hence merging banks would help SBI grow.
SBI will be expanding the present structure so that after the merger there is not any problem faced by the people or the bank.
This process will most probably be over by the end of this Financial Year.
Check out – Latest News on Bank Strike
Market Share Increases
Merger of SBI with its associate banks will also help SBI’s market share to increase. And there are chances that it will go up from 17 % to 22 .5 to 23 %.
Total business will cross Rs. 35 lakh crore mark.
In addition to this, there will be an increase in the SBI’s staff and it is estimated to be more than 35 % to 49 % whereas branch network increase is expected by 6, 000.
Presently, State Bank of India has about 15, 000 plus branches and counting in India.
Thus, if we look at the statistics closely, we can see that there will be huge growth in near future as far as State Bank of India and its Associate Banks are concerned.