Cabinet okays SBI, State Bank of Saurashtra merger

New Delhi, July 24

With the Left parties no longer in the picture and new allies coming into its fold, the UPA Government has been encouraged to take a legislative route to facilitate State Bank of India’s (SBI) acquisition of State Bank of Saurashtra (SBS), the smallest of its associate banks.

The Union Cabinet on Thursday gave its nod for issuing an order sanctioning the acquisition transaction under the aegis of State Bank of India Act, 1955. It also approved the introduction of a Bill in Parliament for repealing the State Bank of Saurashtra Act, 1950.

“The merger of State Bank of Saurashtra with State Bank of India (SBI) would enable it to scale up in terms of footprint, manpower and other resources. It would also enable it to face competition arising from globalisation of the economy, apart from augmenting efficiency and enabling better management of risk”, Mr Priyaranjan Dasmunshi, Information & Broadcasting Minister, told reporters here after the Cabinet meeting.

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