SBI to merge with associates from April 1

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26 Aug, 2025 12:21

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After the government notified April 1 as the effective date of merger, SBI today said in a regulatory filing, “The assets ofState Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH) will be transferred to SBI from April 1, 2017.”Merging of another state-run lender Bhartiya Mahila Bank into SBI hasn’t been finalised yet.

With the merger of all the five associates, SBI is expected to become one of the top 50 banks in the world with a balance sheet size of over Rs 32 lakh crore (about USD 500 billion), 22,500 branches and 58,000 ATMs. It will have a customer base of over 50 crore.

Following the SBI merger, officers and employees, with the exception of the board of directors and executive trustees of the associate banks, will become employees of SBI.SBI's immediate course of action is to enact the swap of shares for all the shareholders of the associate banks in 30 days period.

For every 10 shares of SBBJ, the shareholders will receive 28 shares of State Bank of India. In the case of the other two associate banks, for every 10 shares of SBM and 10 shares of SBT, investor would get 22 shares of SBI in each case.

The shares of the listed associate banks will be delisted from both the stock exchanges following the merger.

SBI had approved separate schemes of acquisition of State Bank of Patiala and State Bank of Hyderabad. There will not be any share swap or cash outgo as they are wholly-owned by SBI.After the audit, SBI will start the process of data integration, streamlining its IT (information technology) platform, rationalise 20 percent of its branches, integrate its five treasury operations into one and getting the employees on the SBI payscale among other things. The integration should be completed in the first half of FY18.

SBI first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged with it.

SBI has a 200 year history and is largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees. The Government of India is the single largest shareholder of this Fortune 500 entity with 62.22 percent ownership as on January 20, 2017. Currently, SBI is ranked 63rd in the list of top banks in the world.

The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India.

In 1955, the Reserve Bank of India acquired the controlling interests of the Imperial Bank of India and SBI was created by an Act of Parliament to succeed the Imperial Bank of India.

The latest consolidation in the banking sector was in 2015 when Kotak Mahindra Bank completed acquisition of mid-sized private lender ING Vysya Bank for about Rs 15,000 crore in an all-stock deal. The deal was touted as India's biggest banking merger.