The merger of State Bank of India (SBI) with its five associate banks and Bharatiya Mahila Bank saw major changes across the nation. The combined entity now ranks among the top 50 banking institutions in the world with regards to assets.
All issues pertaining to logistics and asset allocation should be resolved by the third week of April. Shares of SBI traded at Rs.293.85 at the time of writing this piece, a jump of 0.15 per cent over the closing price of Rs.292.60 on Friday.
Shareholders of State Bank of Bikaner and Jaipur (SBBJ) will get 28 SBI shares of Re.1 each for every ten Rs.10 shares of SBBJ. Similarly, shareholders of State Bank of Mysore (SBM), and State Bank of Travancore (SBT) will get 22 SBI shares worth Re.1 each for ten Rs.10 shares.
The new entity will have over 37 crore customers, with the deposit base standing at around Rs.26 lakh crore.
|Bank||No. of branches||No. of staff||Total assets (Rs.)||Net profit/loss (Rs.)|
|SBBJ||1,316||13,529||1,10,336 crore||851 crore|
|SBH||1,700||18,842||1,64,597 crore||1,065 crore|
|SBM||1,037||10,650||82,975 crore||358 crore|
|SBT||1,177||14,892||1,14,507 crore||338 crore|
|SBP||1,300||15,355||1,31,036 crore||Loss: 972 crore|
|SBI (before merger)||16,784||2,10,485||22,59,063 crore||9,951 crore|
|SBI (post-merger)||23,314||2,83,753||28,62,514 crore||11,590 crore|
The merger, however, led to some confusion among customers, with certain sections reporting that the minimum balance should be Rs.5,000. SBI chairman Arundhati Bhattacharya clarified this, stating that the minimum balance requirement of Rs.5,000 is only in the case of the six metros. Other urban branches require a minimum balance of Rs.3,000, while it is Rs.2,000 for semi-urban branches. Customers of rural banks are required to have a minimum balance of Rs.1,000.