New Delhi: The Union Cabinet approved the amalgamation of State Bank of Travancore and four other associate banks on Wednesday. The other associate banks are State Bank of Bikaner and Jaipur, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
The trade union of SBT and Kerala Govt had opposed the move, fearing loss of privileges.
The merger will make SBI a banking behemoth, with an asset base of Rs.37 trillion or over $555 billion, with 22,500 branches and 58,000 ATMs( figures as on December 2015).
SBI alone has close to 16,500 branches, including 198 foreign offices spread across 36 countries.
Following the news break, the stock of State Bank of Travancore surged 18.14 per cent up.
The merger of associate banks with the SBI is part of the Union Government’s plan to reduce the number of public sector banks in India to 10.
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