The country's largest lender State Bank of India (SBI), in which the government has a 61.32% stake soon merge its five associate banks - and the relatively newer Bharatiya Mahila Bank (BMB) with itself.
Here are things you should know about the merger:
5 Associate banks
The five associate banks that will merge with SBI are SBBJ (State Bank of Bikaner and Jaipur), SBM (State Bank of Mysore), SBT (State Bank of Travancore), SBP (State Bank of Patiala) and SBH (State Bank of Hyderabad). Associate Banks To Become SBI Branches From April 1
The merger will come into effect from April 1, 2017. All branches of the associate banks will function as SBI branch from this date. Customers, including depositors of these five associate banks, will be treated as customers of SBI with effect from April 1, 2017. A Look At Various SBI Charges From April 1, 2017
The Bharatiya Mahila Bank (BMB) will be merged with the country's largest lender State Bank of India (SBI). It was set up in 2013. It has 103 branches with its presence in almost all the states.
Shut down of branches
SBI has decided to shut down almost half the offices of the banks, including the head offices of three of them. This process will start from April 24. Out of the five head offices of the associate banks, SBI will retain only two. Three head offices of the associate banks will be unbound along with 27 zonal offices, 81 regional offices and 11 network offices of the associate banks.
The five associate banks will cease to exist as legal entities and become a part of SBI from April 1, but the various merger processes will start only after April 24, once the balance sheets of the five entities are audited and added. ICICI Bank, SBI, StanChart Top Bank Frauds List
VRS for employees
The associate banks have also offered a Voluntary Retirement Scheme (VRS) to employees who do not wish to relocate. "VRS is only an option, else they will be relocated. They will have a different role (SBI MD, Dinesh Kumar Khara told IANS)
The merger is expected to create a global-size bank. Existing customers of subsidiary banks will benefit from access to SBI's global network.With an asset base of Rs 37 trillion (Rs 37 lakh crore) or over $555 billion, 22,500 branches and 58,000 ATMs. It will have over 50 crore customers. Of the five subsidiary banks, SBBJ, SBM, and SBT are listed. SBI Service Charges: Here Is What The Bank Says