State Bank of India, the largest commercial bank in India has merged its five Associate Banks –State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore besides Bharatiya Mahila Bank with itself with effect from 1st April, 2017. With this 6 way mega merger SBI has again displayed its ability to change and evolve in order to continue as the country champion among banks in India and to create enduring value.
With this merger, State Bank of India will join the league of top 50 banks globally in terms of assets. The total customer base of the Bank will reach 37 crores with a branch network of around 24000 and nearly 59000 ATMs across the country. The merged entity will have a deposit base of more than Rs 26 lac crores and advances level of 18.50 lac crore. Post-merger, all the customers of Associate Banks will enjoy the benefits of a wide array of digital products and services offered by the State Bank of India.
On the merger, Arundhati Bhattacharya, Chairman, SBI said, “We welcome the customers, employees and all other stakeholders of Associate Banks and Bharatiya Mahila Bank (BMB) to SBI fold. The Bank will strive to conclude the transition process within a quarter. The combined entity will enhance the productivity, mitigate geographical risks, increase operational efficiency and drive synergies across multiple dimensions while ensuring increased levels of customer delight.”
SBI is already well poised with robust technology products and services to empower the customers and make their banking seamless. Some of the key technology products and services of SBI are SBI Quick – a self-service app, State Bank Buddy–a mobile wallet, SBI Mingle–social media banking platform on Facebook and Twitter, State Bank Anywhere – a mobile banking app on smartphones. SBI is the first Bank to launch digital banking outlets–sbINTOUCH branches at various locations to provide an immersive experience to customers in banking. The Bank is committed to continue the digital drive to bring in more innovative products and services for customer convenience. Online SBI, the bank’s web banking platform is the 5th most visited financial site, globally.
Post-merger, the Bank will rationalize its branch network by relocating some of the branches to maximize the reach. This will help the Bank to optimize its operations and improve profitability. Integration of Treasuries of the Associate Banks with the Treasury of SBI will bring in substantial cost saving and synergy in Treasury operations.