Mumbai: Moving a step closer to creation of a global-sized bank with assets worth over Rs 37 lakh crore, the SBI board on Thursday approved merger of its five associate banks and Bharatiya Mahila Bank with itself. It also finalised the share swap ratio for three of the listed subsidiaries and BMB. “The central board of directors today approved the merger of State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore and BMB,” the country’s largest lender said in a regulatory filing.
As per the merger proposal, SBBJ shareholders will get 28 shares of SBI (Re 1 each) for every 10 shares (Rs 10 each). Similarly, SBM and SBT shareholders will get 22 shares each of SBI for every 10 shares they hold. In the case of Bharatiya Mahila Bank, 4,42,31,510 shares of SBI will be swapped for every 100 crore of BMB shares having a face value of Rs 10. The two unlisted subsidiaries are fully owned by SBI. The merger will create a banking behemoth of global scale with a balance sheet of Rs 37 trillion or over $555 billion, making it one of the top 50 global financial powerhouses. The merged entity will have 22,500 branches and 58,000 ATMs serving a customer base of over 50 crore.
SBI has close to 16,500 branches, including 191 foreign offices across 36 countries while the five subsidiaries have nearly 6,000 branches. “The share swap ratio is favourable to minority shareholders. We are confident that the ratio would be largely acceptable to all shareholders,” SBI Deputy MD in charge of associates Neeraj Vyas said.
