The Union Cabinet has approved the acquisition by the State Bank of India of its subsidiary banks namely State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore.\u00a0The Cabinet also approved the introduction of a Bill in Parliament to repeal the State Bank of India (Subsidiary Banks) Act, 1959 and the State Bank of Hyderabad Act, 1956.<\/p>\n
The merger is likely to result in recurring savings, estimated at more than Rs. 1,000 crore in the first year, through a combination of enhanced operational efficiency and reduced cost of funds.\u00a0 Existing customers of subsidiary banks will benefit from access to SBI\u2019s global network.\u00a0 The merger will also lead to better management of high value credit exposures through focused monitoring and control over cash flows instead of separate monitoring by six different banks.<\/p>\n
The acquisition under Section 35 of the State Bank of India Act, 1955 will result in the creation of a stronger merged entity.\u00a0 This will minimize vulnerability to any geographic concentration risks faced by subsidiary banks.\u00a0 It will create improved operational efficiency and economies of scale.\u00a0 It will also result in improved risk management and unified treasury operations.\u00a0The acquisition of subsidiary banks of State Bank is an important step towards strengthening the banking sector through consolidation of public sector banks.\u00a0 It is in pursuance of the Indradhanush action plan of the Government and it is expected to strengthen the banking sector and improve its efficiency and profitability.<\/p>\n
Ministry of Finance<\/p>\n","protected":false},"excerpt":{"rendered":"
The Union Cabinet has approved the acquisition by the State Bank of India of its subsidiary banks namely State Bank of Bikaner <\/p>\n","protected":false},"author":91,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1188,2],"tags":[],"class_list":["post-107141","post","type-post","status-publish","format-standard","hentry","category-hot_off_the_press","category-news"],"yoast_head":"\n