SBI gets board approval for merger of associate banks
Pursuant to the applicable provisions of the LODR regulations, we inform you that the Central Board of Directors of the SBI, the bank said in a statement to BSE after its Board of Directors meeting on Thursday, the bank said.
Scheme provides for allotment of:
- 28 equity shares of Re 1 each of SBI for every 10 equity shares of Rs 10 each of SBBJ.
- 22 equity shares of Re 1 each of SBI for every 10 equity shares of Rs 10 each of SBM.
- 22 equity shares of Re 1 each of SBI for every 10 equity shares of Rs 10 each of SBT, and
- 4,42,31,510 equity shares of Re 1 each of SBI for every 100 crore equity shares of Rs 10 each of BMBL.
Board of State Bank of India (SBI) has given its approval for merger of associate banks and Bhartiya Mahila Bank (BMB) with itself.
The merger process of associate banks like State Bank of Bikarner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and Bharatiya Mahila Bank Ltd (BMBL) with SBI, under Section 35 of the State Bank of India Act, 1955, will now begin.
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Employee unions of the banks, however, are against the merger and have demonstrated against the move.
Nearly 10 lakh employees, last month, went on a day-long strike to protest against this merger scheme.
ALSO READ: SBI merger: Associate banks' employees call for strike
The merger now requires the approval of the Scheme by the Reserve Bank of India (RBI) and the government.
“Pursuant to the applicable provisions of the LODR regulations, we inform you that the Central Board of Directors of the SBI,” the bank said in a statement to BSE after its Board of Directors meeting on Thursday," the bank said.
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