SBI is all set to merge its 5 subsidiaries and Bharatiya Mahila Bank into a single entity. According to State Bank of India chairperson Arundhati Bhattacharya, this move will boost the market share of SBI and cut down several costs. her estimate is that post-merger SBI’s market share will be 3 times that of their closest competitor. SBI has already cleared the proposal for the merger in May and now it is pending government approval.
Mrs. Bhattacharya said that it will take approximately 1 month for government approval and another 6 months for the merger to complete. The 5 subsidiaries being merged are State Bank of Travancore, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore and State Bank of Patiala. Post merger, treasury operations are supposed to improve. There is also a focus on providing better financial vehicles to customers.