SBI’s associate banks soon to submit report on merger to RBI

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sbi_associates_banksTaking part in the amalgamation process within the SBI group, its associated banks are soon going to submit the scheme of acquisition to Reserve Bank of India (RBI).

As ratified by the shareholders, all the five associated banks of SBI group including State Bank of Bikaner and Jaipur (SBBJ) will be submitting the report.

According to SBBJ, “the board of the directors has considered the report of the expert committee set up to look into the written objections from shareholders in terms of the Grievance Redressal Mechanism” set up as part of the scheme of acquisition.

The board recently approved the August 18 scheme of acquisition without any modification.

The scheme of Acquisition of SBBJ along with the Report of the Expert Committee will be submitted to the RBI for their consideration and approval. Upon approval, RBI shall submit the scheme of acquisition as approved by it to the government of India for approval and issue of order of Acquisition under section 35 of the SBI Act 1955, the SBBJ added.

Other associates — State Bank of Mysore and State Bank of Travancore also made similar announcements recently.

The Centre, earlier this year, had cleared the proposal to merge SBI with its five associate banks — SBBJ, State Bank of Travancore, State Bank of Patiala, State Bank of Hyderabad — and the new Bharatiya Mahila Bank (BMB).

In August 2016 , SBI had said that all its associate banks and BMB will be merged into it and this will add an additional Rs 8 lakh crore to its assets making it a banking behemoth with total assets of Rs 30 lakh crore, an increase of about 36 per cent.