SBI Approves Merger with its Associates

The board of countrys largest lender, SBI State Bank of India, has approved the merger of
its associate banks, along with Bhartiya Mahila Bank, with itself.
According to the approved merger ratios for each bank the scheme offers for allotment
of:
Twenty eight (28) equity shares of Rs.1 each of State Bank of India for every 10 equity
shares of Rs.10 each of State Bank of Bikaner and Jaipur.
Twenty two (22) equity shares of Rs.1 each of State Bank of India for every 10 equity
shares of Rs.10 each of State Bank of Travancore.
Twenty two equity shares of Rs.1 each of State Bank of India for every 10 equity shares
of Rs.10 each of State Bank of Mysore.
Over 4 cr equity shares of Rs.1 each of State Bank of India for every 100 cr equity
shares of Rs.10 each of Bhartiya Mahila Bank.
State Bank of India (SBI) CFO Anshula Kant told CNBC-TV18 that 8 valuation experts had
been appointed to arrive at the share swap and May 16, the day when the merger was first
announced, was decided to be the valuation cut-off date.

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SBI share price is currently trading 3.28 per cent higher, on the other hand, State Bank of
Mysore share price is trading 10.72 per cent lower on NSE. State Bank of Travancore share
pricestands 5.89 per cent up while State Bank of Bikaner and Jaipur or SBBJ share
price edges 2.08 per cent higher on NSE.
Lastly, she concluded that the associate banks whose asset quality is generally worse as
compared to that of their parents, might witness some NPA pain in the September quarter
because SBI seems to clean up their balance sheets and pull them up to its own levels.

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