The country's largest lender, State Bank of India (SBI) has approved a merger with State Bank of Mysore, State Bank of Bikaner and Jaipur and State Bank of Travancore. Here are 6 things that happen after the merger goes through.
Push the bank among the top 50 globally
According to news reports, after the merger with some subsidiaries, State Bank of India would enter into the top 50 banks globally.
Create a huge asset base of Rs 37,000 lakh crores
After the proposed merger goes through, it will create an asset base of around Rs 37,000 lakh crores for SBI, which the second biggest player in the country will find very difficult to match.
Gap with ICICI Bank widens
State Bank of India will widen the gap with ICICI Bank in terms of size and estimates make the merged bank almost 4-5 times the size of ICICI Bank, which is the second largest bank in the country.
Who gets what?
Share holders of State Bank of Travnacore will get 22 of SBI shares for every 10 shares held of State Bank of Travancore.
Shareholders of State Bank of Mysore shareholders will get 22 of SBI shares for every 10 shares held of State Bank of Mysore.
State Bank of Bikaner and Jaipur shareholders will get slightly more, that is 28 shares for every 10 shares held in State Bank of Bikaner and Jaipur.
Other associates banks may also merge
We may also see State Bank of Hyderabad and State Bank of Patiala also merging with SBI in the future.
How shareholders are treating the merger?
Shares of State Bank of Mysore crashed 10 per cent, following news of the share deal, while State Bank of Bikaner and Jaipur and State Bank of Travancore saw their shares prices rising.