Six banks to merge with State Bank of India

sbi7591The first large-scale consolidation is underway, with the merger of six banks with the State Bank of India.

The merger is set to create a banking behemoth with assets amounting to one-fourth of the Indian banking system.

After the merger the SBI is expected to have 24,000 branches.

The Banks in question include the State Bank of Mysore, the State Bank of Travancore, State Bank of Patiala, State Bank of Hyderabad, State Bank of Bikaner and Jaipur. The government also gave the go ahead to the merger of 5 associate banks of SBI and Bharatiya Mahila Bank.

A fairness opinion was also sought from JM Financial and ICICI Securities.

The merger is expected to take less than a year to implement and all the employees will be absorbed in the merged entity.