State Bank of India's board today approved merger of three associate lenders and Bharatiya Mahila Bank (BMBL) with SBI, a move which will make the state owned lender a bank of global size.
"The central board of directors of SBI has accorded their approval to the scheme of acquisition of the State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and Bharatiya Mahila Bank Limited ( BMBL) by the State Bank of India," SBI said in a BSE filing today.
The proposal does not include merger of State Bank of Patiala and State Bank of Hyderabad with SBI.
As per the merger proposal, SBBJ shareholders will get 28 shares of SBI (Rs 1 each) for every 10 shares (Rs 10 each). Similarly, SBM and SBT shareholders will get 22 shares of SBI for every 10 shares.
In the case of Bharatiya Mahila Bank, 4,42,31,510 shares of SBI will be swapped for every 100 crore of Rs 10 each.
Last month, the Union Cabinet had cleared merger of all the five associate banks of SBI with the parent and acquisition of BMBL.
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