Arundhati Bhattacharya plans SBI merger by October end

State Bank of India (SBI) hopes to commence the merger of its associates as well as Bharatiya Mahila Bank with itself by end of October and try to accomplish the process by next March, making it the 45^th largest lender worldwide in terms of assets worth Rs.37 trillion. 

In early August, SBI’s central board had approved the acquisition of all the 5 associate banks and Bharatiya Mahila Bank and also finalized the swap ratios for the merger. 

SBI chairman Arundhati Bhattacharya told PTI in an interview on 4^th September that the merger process would kick off by October-end. She added that the grievance committee would return to them hopefully by the end of September, thereafter they had to send it to the RBI and then to the government for final approval, which might probably take a month. She concluded that post the approval, the merger could take place.

Meanwhile, SBI share price was trading 1.69 per cent higher at Rs.258.90 on NSE today.

Swap Ratio Pattern:

According to the swap ratio for the merger proposal, SBBJ shareholders would get 28 shares of SBI (1 rupee each) for every 10 shares (Rs.10 each) or a ratio of 1:28, on the other hand SBM and SBT shareholders would receive 22 shares of 10 SBI shares. In case of Bharatiya Mahila Bank, 4,42,31,510 shares of SBI would be swapped for every 100 cr of Rs.10. 

After approval from the board, SBI had placed a grievance redressal mechanism to offer an opportunity to its shareholders to list their objections in regards to the share swap ratios. It has given 21 days for shareholders to lodge in their complaints.

After the merger, the combined entity shall have 22,500 branches and 58,000 ATMs serving more than 50 cr customers. For more details on the stock, please visit SBI share price history.