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Cabinet nod for merger of bank with SBI

NEW DELHI: The Union Cabinet on Thursday gave its nod for the merger of the State Bank of Saurashtra (SBS) with its parent, State Bank of India (SBI), to help to create a bigger entity that could take on global competition.

The proposal had been put in cold storage owing to stiff opposition from the Left-backed trade unions, which also called a strike earlier.

To set the ball rolling, the government will now have to repeal the State Bank of Saurashtra Act, 1950 and thereafter “make consequential amendments in the State Bank of India (Subsidiary Banks) Act, 1959 to remove references to State Bank of Saurashtra wherever it occurs …”

I&B Minister Priyaranjan Dasmunsi said the merger would enable SBS to upscale in terms of footprint, manpower and other resources. It would also enable it to face competition.

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Cabinet nod for merger of bank with SBI

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