SBIS

Merger

Plan

Is

In

Progress

State Bank of India informed that the merger plan of

associates with itself is progressing and it will not get
delayed because of this high-value currency withdrawal and
its aftermath. The merger of five associates and the Bharatiya
Mahila Bank (BMB) will be executed by 2016-17 end.
Talking about the expectations from the monetary policy
review to be issued on December 7, Rajnish Kumar, SBI MD
said that it is indeed very difficult to predict now since the
monetary policy committee now decides. People are expecting a 25-50-basis point cut
and no rate cut will be a bigger surprise. If the incremental CRR comes down, it will help
the banks pass on the benefit to customers, he said on the sidelines of Inclusive Finance
Summit here.
On demonetization, Kumar is of the view that the there would be salary and pension
rush for the next 5-7 days. The deposit transaction is going to be marginally lower
during the salary withdrawal period. The government earlier this year gave the
approval to merge SBI with its five associate banks, namely state bank of bikaner and
jaipur, state bank of travancore, state bank of mysore, state bank of patiala, state bank
of hyderabad and bmb.
During August, SBI had said all its associate banks along with BMB will be merged into
it. Hence, adding an additional Rs 8 lakh crore to its assets, potentially making it a
banking behemoth with total assets of Rs 30 lakh crore, an increase of about 36 per
cent. If the merger turns successful, SBI will become a global-sized bank and could
compete with the largest in the world, with 22,500 branches and 58,000 ATMs. It will
have over 50 crore customers.
As of now, SBI has close to 16,500 branches, including 191 foreign offices spread across
36 countries. SBI had already merged two of its associates State Bank of Saurashtra in

2008

and

State

Bank

of

Indore

in

2010

with

itself.

Furthermore, SBI disclosed that its saving accounts have swelled up by Rs 1 lakh crore
after demonetization. Their deposits have crossed by Rs 1 lakh crore in saving accounts
from November 8 till date. The agenda for the next 3-4 months is to look at different
issues to increase their loaning and digitization of banking operations.
As the markets opened on 6th Dec, SBI share price is trading above 0.66 per cent at Rs.
258.60.
SBI is one of the top 500 performing stocks for this quarter.

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The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research
team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
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Article Written by
Madhurima Chowdhury