State Bank of India gets into global top-50 league after merger

State Bank of India. (File Photo) State Bank of India. (File Photo)

State Bank of India (SBI) will join the league of top-50 banks globally in terms of assets after the merger of five associate banks —State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore, besides Bharatiya Mahila Bank (BMB) — with itself with effect from Saturday. SBI will become the 45th largest bank in the world after the merger. The total customer base of the bank will reach 37 crore, with a branch network of around 24,000 and nearly 59,000 ATMs across the country. The merged entity will have a deposit base of more than Rs 26 lakh crore and advances level of 18.50 lakh crore. “Post-merger, all the customers of associate banks will enjoy the benefits of a wide array of digital products and services offered by the State Bank of India,” said SBI.

Arundhati Bhattacharya, chairman, SBI, said: “We welcome the customers, employees and all other stakeholders of associate banks and BMB to SBI fold. The bank will strive to conclude the transition process within a quarter. The combined entity will enhance the productivity, mitigate geographical risks, increase operational efficiency and drive synergies across multiple dimensions while ensuring increased levels of customer delight.”

SBI has already indicated that it will relocate those branches that are close to each other to other locations. “We have to be nearer to the customers. We will take the branch to another location. We will rationalise the cost of operations,” said SBI managing director (associate banks) Dinesh Kumar Khara.

“This will help the bank to optimise its operations and improve profitability. Integration of treasuries of the associate banks with the treasury of SBI will bring in substantial cost saving and synergy in treasury operations,” said SBI.

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Source: http://indianexpress.com/article/business/banking-and-finance/state-bank-of-india-gets-into-global-top-50-league-after-merger-4595791/