Commercial Banking - Project Group 10 PDF

St.
Joseph’s Institute of Management Commercial Banking: Group 10 – Project Report
ST. JOSEPH’S INSTITUTE OF MANAGEMENT
Primrose Road, Bangalore 560 025
A Study on the Merger of State Bank of India with its

Associate Banks
Project Report for Commercial Banking
Submitted in partial fulfilment of the requirements for the award

ofThe Post Graduate Diploma in Management
Under the guidance of
Prof. Ravi Darshini
Submitted byGroup 10
Members of Group 10:
Suraj Singh-19174
Sachin Powani – 19146
Ramya Ravi – 19133
Baby Francis – 19063
Navneet M – 19095
A Study on The Merger of SBI with its Associate Banks Page 1

St. Joseph’s Institute of Management Commercial Banking: Group 10 – Project Report
Table of Contents
Chapters Contents Page No:

Indian Economy 3
Chapter 1 Alternative Mechanism for banks meger 5
Introduction 6
List of Directors on the central board of state
bank of India 9
History 10
Chapter 2 Merger with SBI 17
Objective of the study 19
Scope of the study 19
Research Methodology 20
Limitation of the study 20
Reasons for the merger 21
Benefits of the Merger 24
Challenges of the merger 26
Chapter 3 Review of Literature 27
Chapter 4 Data Analysis 35
Chapter 5 Findings and Recommendation 46
Suggestions 47
Bibliography 48
Insights: INDIAN ECONOMY

Public Sector Banks Consolidation
The government is working on a consolidation agenda with a view to

creating 3-4 global-sized banks and reduce the number of state-owned
lenders to about 12.
Need for Consolidation
Indian banking sector is highly fragmented, especially in comparison with

other key economies.
 To protect the financial system and depositors’ money

 Many banks are not in a position to raise equity from the market.
 For cutting operational cost and acquiring efficiency.
 To build capacity to meet credit demand and sustain economic
growth.
 The need to bridge geographical gaps.
 In 1991 it was suggested that India should have fewer but stronger
PSBs.
 The gross NPAs increased enormously for Public sector banks (PSBs).
 The share values of several PSBs are trading at a discount to their
book value.
Benefits
 From regulatory perspective, monitoring and control of less number of

banks will be easier after mergers.
 For meeting the norms under BASEL III, for ensuring capital adequacy
ratio, the larger banks will be at ease.
 Large sized banks enable disbursement of greater credit, for large
developmental projects and effective management of NPAs.
 Add commercial strength and prevent multiplicity of resources being
spent in the same area.

 Improve the capacity of the banking system to absorb shocks that the
markets may cause to it
 Banks will have the capacity to raise resources without depending on the
State exchequer
 Bigger banks can attract more Current Account, Savings Account (CASA)
deposits.
 They can take up high-end technological up-gradation.
 They can establish oversees operations.
Risks and Challenges
 Human Resources
 One of the most challenging problems would be human resource
integration and management.
 Employees would fear job loss, reduced promotional avenues, new
culture, etc.
 Harmonization of Technology
 Challenge for integration of technology as various banks are currently
operating on different technology platforms.
 Monitoring, Regulation and Control
 Failure of a very large bank may have macro implications on the
economy and may have to be bailed out during stress periods.
 RBS from United Kingdom is an example of how a big global bank
collapsed post the global financial crises and had to sell its assets
globally.
 Large-scale shutting of branches in urban centres
 Rationalisation of branches due to overlap may lead to their
relocation.
 Many big private banks globally, including in the US, have failed
 In the US and the UK, political campaigns have been run advocating
break-up of big banks.
 Following the merger of 5 SBI associate banks, SBI's gross NPAs
jumped from Rs1.08 trillion to Rs1.79 trillion.
 Recruitment for bank jobs will be hit badly due to consolidation of
PSBs.

Alternative Mechanism (AM) for Banks' Merger
 The Union Cabinet has given in-principle approval for Public Sector
Banks to amalgamate through an Alternative Mechanism (AM).
 Mergers to be decided on commercial considerations.
 The proposal must start from the Boards of Banks.
 Group of ministers to oversee the bank merger process.
 Merger proposals have to be approved by the parliament
 This would also expedite decision-making and address issues well in
time.
Way Forward
 RBI should continue to give banking licences for more small finance
banks as well as universal banksalong with bank mergers
 The Narasimhan committee had spoken about a large number of regional
and local banks at the lowest tier of banking structure.
 Address the core concerns of employees, mitigate their anxieties, and
create an environment of trust.
 Consolidation should be done keeping in mind the interest of minority
shareholders and bring in greater autonomy for banks.
 It is high time that Government takes stringent measures to recover the
bad loans and take bold action on these big defaulters.

INTRODUCTION
Banking industry in India at glance Indian banking is the lifeline of the
nation and its people. Banking has helped in developing the vital sectors
of the economy and usher in a new dawn of progress on the Indian
horizon. The sector has translated the hopes and aspirations of millions of
people into reality. But to do so, it has had to control miles and miles of
difficult terrain, suffer the indignities of foreign rule and the pangs of
partition. Today, Indian banks can confidently compete with modern banks
of the world. Before the 20th century, usury, or lending money at a high rate
of interest, was widely prevalent in rural India.
Entry of Joint stock banks and development of Cooperative movement have

taken over a good deal of business from the hands of the Indian money
lender, who although still exist, have lost his menacing teeth. In the
Indian Banking System, Cooperative banks exist side by side with
commercial banks and play a supplementary role in providing need-based
finance, especially for agricultural and agriculture-based operations
including farming, cattle, milk, hatchery, personal finance etc. along with
some small industries and self- employment driven activities.
SBI at a Glance
The bank traces its ancestry to British India, through the Imperial Bank of
India, to the founding, in 1806, of the Bank of Calcutta, making it the
oldest commercial bank in the Indian subcontinent. Bank of Madras
merged into the other two "presidency banks" in British India, Bank of
Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in

turn became the State Bank of India in 1955. Government of India owned
the Imperial Bank of India in 1955, with Reserve Bank of India (India's
Central Bank) taking a 60% stake, and renamed it the State Bank of India.
In 2008, the government took over the stake held by the Reserve Bank of
India.
State Bank of India (SBI) is an Indian multinational, public sector banking

and financial services company. It is a government-owned corporation with
its headquarters in Mumbai, Maharashtra. On April 1, 2017, the State Bank
of India, which was India's largest bank, merged with five of its associate
banks.
Key strengths of SBI

State Bank of India is a banking behemoth and has 20% market share in
deposits and loans among Indian commercial banks. State Bank of India
(SBI) is an Indian multinational, public sector banking and financial services
company. It is a government-owned corporation. As of 2016-17, it had
assets of 30.72 trillion (US$460 billion) and more than 14,000 branches,
including 191 foreign offices spread across 36 countries, making it the
largest banking and financial services company in India by assets. The
company is ranked 232nd on the Fortune Global. 500 list of the world's
biggest corporations as of 2016.
The Union cabinet on June 15, 2016 approved the merger of the five
subsidiaries of State Bank of India (SBI) with the parent, as the Indian
banking system moves into a phase of consolidation. The cabinet approved
the merger of the subsidiaries namely State Bank of Mysore, State bank of
Travancore, State Bank of Hyderabad, State Bank of Patiala, State Bank of
Bikaner and Jaipur along with BhartiyaMahila Bank Ltd with SBI. SBI’s
merger with subsidiaries will see the combined entity’s balance sheet at a
whopping Rs.37 trillion, making it one of the top 50 banks in the world. SBI
first merged state bank of Saurashtra with itself in 2008. Two years later,
State Bank of Indore was merged with it.

The five associate banks that have merged with SBI are: SBBJ(State
Bank of Bikaner and Jaipur),SBM(State Bank of Mysore),SBT(State Bank of
Travancore), SBP(State Bank of Patiala) and SBH(State Bank of
Hyderabad).Those areas where SBI is not having branches but its associate
banks are having, upon the merger being effected, the customer confidence
and good report will be created because SBI is having a good report for all
its customers but the other associate banks are not that good as the SBI.
Also, they do not enjoy all those benefits as the SBI.
Some sort of change in the name from SBI associates to SBI will have a good
market impression and will generate goodwill. Merger of the group entities of
SBI is a way to restructure the Balance Sheet of the entities.
Restructuring is required when the entities are facing financial crises or

there is a possibility of the entity to not be able to meet out its existing
liabilities. In corporate restructuring, some liabilities are set off with
realization of assets. In this case, some entities liabilities will be set off
against the higher revalued assets of the other entities in order to make a
good and attractive Balance Sheet Size of the merged entity.
SBI has foreign subsidiaries like SBI International (Mauritius) Ltd, State
Bank of India (California), State Bank of India (Canada), INMB Bank Ltd,
Lagos Bank, and SBI Indonesia (SBII). SBI, non-banking
Subsidiaries like SBI Capital Markets Ltd, SBI Fund Management Private
Ltd, SBI Factors & Commercial Services Private Limited, SBI Card &
Payment Services Private Ltd, and SBI General Insurance Company Limited.
SBI joint ventures are SBI General Insurance Company Limited, SBI Life
Insurance Company Ltd.

List of Directors on the Central Board of State Bank of India
Sl.no Name Designation Under section of SBI Act1985
1. ShriRajnishKumar Chairman 19(a)

2. Shri B.Sriram Managing Director 19(b)
3. ShriP.K.Gupta Managing Director 19 (b)
4. ShriDinesh KumarKhara Managing Director 19(b)
5. ShriSanjivMalhotra Director 19(c)
6. ShriBhaskarPramanik Director 19 (c)
7. ShriBasantSeth Director 19(c)
8. ShriGirishK.Ahuja Director 19(d)
9. Dr. PushpendraRai Director 19 (d)
10. ShriChandanSinha Director 19 (f)
11. ShriRajivKumar Director 19 (e)
12. Dr.PurnimaGupta Director 19 (d)
MISSION: Committed to providing simple, Responsive and innovative

financial solutions
VISION: Be the Bank of choice for transforming India.
VALUES: Service | Transparency | Ethics | Politeness | Sustainability.

HISTORY
The roots of the State Bank of India lie in the first decade of the 19th
century, when the Bank of Calcutta later renamed the Bank of Bengal, was
established on 2 June 1806. The Bank of Bengal was one of three
Presidency banks, the other two being the Bank of Bombay(incorporated
on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All
three Presidency banks were incorporated as joint stock companies and were
the result of royal charters. These three banks received the exclusive right
to issue paper currency till 1861 when, with the Paper Currency Act, the
right was taken over by the Government of India. The Presidency banks
amalgamated on 27 January 1921 and the re-organized banking entity took
as its name Imperial Bank of India. The Imperial Bank of India remained a
joint stock company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the
Reserve Bank of India, which
is India's central bank, acquired a controlling interest in the Imperial Bank of

India. On 1 July 1955, the imperial Bank of India became the State Bank of
India. In 2008, the Government of India acquired the Reserve Bank of India's
stake in SBI so as to remove any conflict of interest because the RBI is the
country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks)
Act. This made SBI subsidiaries of eight that had belonged to princely
states prior to their nationalization and operational takeover between
September 1959 and October 1960, which made eight state banks associates
of SBI. This une with the first Five Year Plan, which prioritized the
development of rural India. The government integrated these banks into the
State Bank of India system to expand its rural outreach. In 1963 SBI
merged State Bank of Jaipur (est. 1943) and State Bank of Bikaner
(est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar
(est. 1911), which SBI acquired in 1969, together with its 28 branches.

The next year SBI acquired National Bank of Lahore (est. 1942), which
had 24 branches. Five years later, in 1975, SBI acquired KrishnaramBaldeo
Bank, which had been established in 1916 in Gwalior State, under the
patronage of Maharaja MadhoRaoScindia. The bank had been the
DukanPichadi, a small moneylender, owned by the Maharaja. The new
bank's first manager was Jall N. Broacha, a Parsi.
In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120
branches. SBI was the acquirer as its affiliate, the State Bank of Travancore,
already had an extensive network in Kerala.
There has been a proposal to merge all the associate banks into SBI to create
a "mega bank" and streamline the group's operations.

The first step towards unification occurred on 13 August 2008 when State
Bank of Saurashtra merged with SBI, reducing the number of associate state
banks from seven to six. On 19 June 2009, the SBI board approved the
absorption of State Bank of Indore. SBI holds 98.3% in State Bank of Indore.
(Individuals who held the shares prior to its takeover by the governmenthold
the balance of 1.7%.). The acquisition of State Bank of Indore added 470
branches to SBI's existing network of branches. Also, following the
acquisition, SBI's total assets will approach ₹10 trillion. The total assets of
SBI and the State Bank of Indore were ₹9,981,190 million as of
March 2009. The process of merging of State Bank of Indore was completed
by April 2010, and the SBI Indore branches started functioning as SBI
branches on 26 August 2010.
OPERATIONS
SBI provides a range of banking products through its network of branches in
India and overseas, including products aimed at non-resident Indians (NRIs).
SBI has 14 regional hubs and 57 Zonal Offices that are located at important
cities throughout India.
Domestic presence
SBI has 18,354 branches in India.[14] In the financial year 2012–13, its
revenue was ₹2.005 trillion (US$31 billion), out of which domestic operations
contributed to 95.35% of revenue. Similarly, domestic operations contributed
to 88.37% of total profits for the same financial year.
Under the PradhanMantri Jan DhanYojana of financial inclusion launched

by Government in August 2014, SBI held 11,300 camps and opened over 3
million accounts by September, which included 2.1 million accounts in rural
areas and 1.57 million accounts in urban areas.

International presence
The Israeli branch of the State Bank of India located in Ramat Gan
As of 2014–15, the bank had 191 overseas offices spread over 36 countries
having the largest presence in foreign markets among Indian banks.
SBI operates several foreign subsidiaries or affiliates.
In 1989, SBI established an offshore bank: State Bank of IndiaInternational

(Mauritius) Ltd in Mauritius. SBI International (Mauritius) Ltd amalgamated
with The Indian Ocean International Bank, which has been doing retail
banking business in Mauritius since 1979 with the new name, SBI
(Mauritius) Ltd.
Today, SBI (Mauritius) Ltd is having fully integrated 14branches- 13

Retail Branches covering major cities and town of Mauritius, including
Rodrigues, and 1 Global Business Branch atEbene in Mauritius. Apart
from Branch Banking, customers also have the convenience of 24x7 ATM
Banking at 18 ATMs across the country. Bank also has a 24x7 robust
Internet Banking Channel enabling customers to work from their homes
and offices.
SBI Sri Lanka now has three branches located in Colombo, Kandy and
Jaffna. The Jaffna branch was opened on 9 September 2013. SBI Sri Lanka,
the oldest bank in Sri Lanka, celebrated its 150th year in Sri Lanka on 1
July 2014.
State Bank of India (S.B.I.) Branch at TsimShaTsui, Hong Kong
In 1982, the bank established a subsidiary, State Bank of India, whichnow

has ten branches—nine branches in the state of California and one in
Washington, D.C. The 10th branch was opened in Fremont, California on 28
March 2011. The other eight branches in California are located in Los
Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and
Bakersfield.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the
Indo–Nigerian Merchant Bank and received permission in 2002 to commence
retail banking. It now has five branches in Nigeria.
In Nepal, SBI owns 49% of SBI Nepal (State Bank in Nepal) share with Nepal
Government owing the rest and SBI NEPAL has branches throughout the
country in each and every city as banking has become the major part of
daily life for Nepalese people.
In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank
owning the rest. In Indonesia, it owns 76% of PT Bank Indo Monex.
The State Bank of India already has a branch in Shanghai and plans to open
one in Tianjin.[18]
In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it
acquired for US$8 million in October 2005.
In January 2016, SBI opened its first branch in Seoul, South Korea following
the continuous and significant increase in trade due to the Comprehensive
Economic Partnership Agreement signed between New Delhi and Seoul in
2009.
FORMER ASSOCIATE BANKS

SBI acquired the control of seven banks in 1960. They were the seven
regional banks of former Indian princely states. They were renamed,
prefixing them with 'State Bank of'. These seven banks were State Bank of

Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of
Indore (SBN), State Bank of Mysore (SBM), State Bank of Patiala (SBP), State
Bank of Saurashtra (SBS) and State Bank of Travancore (SBT). All these
banks were given the same logo as the parent bank, SBI.
The plan for making SBI a mega bank with trillion-dollarbusiness by

merging the associate banks started in 2008, and in September the same
year, SBS merged with SBI. The very next year, State Bank of Indore (SBN)
also merged. In the same year, a subsidiary named BharatiyaMahila Bank
was formed.
The negotiations for merging of the 6 associate banks (State Bank of Bikaner
and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of
Patiala, State Bank of Travancore and BharatiyaMahila Bank) by acquiring
their businesses including assets and liabilities with SBI started in 2016.
The merger was approved by the Union Cabinet on 15 June 2016. The State
Bank of India and all its associate banks used the same blue Keyhole
logo. The State Bank of India word-mark usually had one standard
typeface, but also utilized other typefaces.
On 15 February 2017, the Union Cabinet approved the merger of five

associate banks with SBI. What was overlooked, however, were different
pension liability provisions and accounting policies for bad loans, based on
regional risks.

•State Bank of Bikaner & Jaipur
•State Bank of Hyderabad
•State Bank of Mysore
•State Bank of Patiala
•State Bank of Travancore
•BharatiyaMahila Bank
Were merged with State Bank of India with effect from 1stApril 2017.

Mergers with SBI
SBI acquired the control of seven banks in 1960. They were the seven
regional banks of former Indian princely states. They were renamed,
prefixing them with 'State Bank of'. These seven banks were State Bank of
Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of
Indore (SBN), State Bank of Mysore (SBM), State Bank of Patiala (SBP),
State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT). All
these banks were given the same logo as the parent bank, SBI. The merger
was approved by the Union Cabinet on 15 June 2016. The State Bank of
India and all its associate banks used the same blue Keyhole logo. The
State Bank of India word mark usually had one standard typeface, but also
utilized other typefaces. On 15 February 2017, the Union Cabinet approved
the merger of five associate banks with SBI. The State Bank of Bikaner &
Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of
Patiala and State Bank of Travancore, and BharatiyaMahila Bank were
merged with State Bank of India with effect from 1 April2017.
The 3 Banks which we would analyze are:
 State Bank of Hyderabad (founded1941):

Hyderabad State Bank was established on 8 August 1941 under
theHyderabad State Bank Act, by last Nizamof Hyderabad, Mir Osman
Ali Khan now the new state of Telangana. It is one of the five associate
banks of State Bank of India and is one of the scheduled banksin India.
In 1956, the Reserve Bank of India took over the bank as its first
subsidiary and renamed it as State Bank of Hyderabad. Since 1956 it

has been a subsidiary and largest associate bank of SBI. The bank has
performed well in the past decades, winning several awards for its
banking practices. SBH had over 2,000 branches and about 18,000
employees. The Bank's business has crossed Rs. 2.4 trillion as on
31.12.2015 with a net profit of Rs. 8.12 billion. The bank has performed
well in the past decades, winning several awards for its banking
practices.
 State Bank of Travancore (founded1945):
SBT was established in 1945 as the Travancore Bank Ltd, at the

initiative of Travancore Divan C.P. Ram swami Iyer. Following popular
resentment against his dictatorialrule,thebanknolonger credits his role.
Instead, the Bank now considers the Maharaja of Travancore as the
founder, though the king had little to do with the founding. Although
the Travancore governmentput up only 25% of the capital, the bank
undertook government treasurywork andforeign exchange business,
apart from its general banking business. Its registeredoffice was at
Madras. In 1960, it becamea subsidiary of State Bank of India under
the SBI Subsidiary Banks Act, 1959, enacted by the Parliament
ofIndia.
 State Bank of Mysore (founded1913):
State Bank of Mysore was established in the year 1913 as TheBank of

Mysore Ltd.under the patronage of Maharaja Krishna Raja WadiyarIV,
at the instance of the banking committee headed by the great

Engineer- Statesman, Bharat RatnaSir M.Visvesvaray.During 1953,

"Mysore Bank" was appointed as an agent of Reserve Bank of India to
undertake Government business and treasury operations, and in March
1960, it became a subsidiary ofthe State Bank of India under the
State Bank of India (subsidiary Banks) Act 1959. Now the bank is an
Associate Bank under State Bank Group and the State Bankof India
holds 92.33% of shares. The Bank's sharesare listed in Bangalore,
Chennai, and Mumbai stock exchanges. This bank had 976 branches
and 10627 employees (June 2014) and the Bank had 772 branches
(79%) in Karnataka State. The bank's turnover in the year 2013-2014
was around US$19 Billion and Profit about US$46Million.
Objectives of theStudy
1) To know the impact of SBI merger and itseffects.
2) To analyze the reasons of SBI formerging.
3) To know the various challenges of SBI during implementation ofmerger.
4) To analyze the financial position of SBI before and aftermerging
Scope of theStudy
The scope of the study is to analyze the financial performance of the State
Bank of India through the ratio analysis. This study is an attempt to analyze
the present position and as well as strength of the bank.
Research Methodology
1) Research Design:The present study adopts an analytical and

descriptive research design. This study is undertaken with secondary
data.
2) Data Collection:State Bank of India was merged with its associate banks
in the year of 2017 and 5 years (2014-2019) of data has been taken in
this study to analyze the financial condition of before and after merging
the bank. The data collection used for the study is secondary data. The
secondary data is collected from various books, journals, web sites etc.
The data relating to the bank is collected from the records and the
websites of thebank.
3) Statistical Tools Used for Analysis:RatioAnalysis.
Limitations of theStudy
1) The study is restricted to a period of five years of SBIbanks
2) The analysis is based only upon the annual report of SBIbanks.
3) The analysis is based only on the secondarydata.
4) Primary data could not be collected due to the present lockdown
situation.
Reasons for the Merger

 Govt. Aid to 1 Merged SBI Group: Firstly, the SBI and associates are
one of the largest Govt. undertaking of the Central Govt. whom
annual allocation of subsidy and contribution towards Bad Debt

Recovery and Share Capital has to be made by the Indian Govt.
There is practically no sense of giving aid to so many banks
separately when it can be given to a single entity. Govt. Aid is for sure
to be given to these banks and not just SBI and group but all the
banks. So, Govt. Aid to a single SBI merged bank will be much easier
in terms of accountability.
 Bad performance of Banking Sector:Because of the current market

situation andwhatwill bein future, most of the Bank’s profitability has come
done from quite a few previous years. Many Bank’s Shareprices have also
fallen drastically because of the expectation of under-performance of
theBanks.TheState Bank group is no exception to the same and the same
appliesto it also. SBI is theholding company and the other are its
subsidiaries. So, inorder to show better profitability, merger of the
Banks is an essential requirement.
 Bad Loans &Inability to Recover:SBI and group is the one ofthe largest
banking sector entities who have croresand croresof Bad Loans which are
not recoverable. Some entities GrossNPA has reached up to 20%. Due to
huge bad loans, an internal corporate restructuring is required for all the
associate groupentities, otherwise in upcoming few years, few of them may
even not survive in themarket.
 Corporate Restructuring:Merger of the group entitiesof SBI is a way to
restructurethe Balance Sheet ofthe entities. Restructuring is required
when the entities are facing financial crises or there is a possibility of

the entity to not be able to meet out its existing liabilities. In corporate
restructuring, some liabilities are set off with realization of assets. In this
case, some entities liabilitieswill be set off against the higherrevalued
assets of the other entities in order to make a good and attractive Balance
Sheet Size of the mergedentity.
 Bigger Bank:By merging all the associate entities, SBI will become a
much bigger and better bank as it will be catering to al large segment of
customers as from its current position. It will be able to make many
services convenient to the customers through a single bank rather than
approaching other associated banks. It will have larger customer base,
hence chances of earning good profitability over its deposits. It will
havethe advantage of Synergy with the associated banks. No high
integrationcost will be paid since the set-up is almost similar. It will
havegood asset portfolio. All-over, goodreport will be created amongst its
customers.
 Better Management:Since it will become one big merged Bank, it will

haveonly a managementsystem rather than having different management
set-up over the associate banks. Because of single management,
efficiencyand effectivenessof the business processes will be increased.
Single circular will be issued forall the merged Banks for operational and
management supervision.
Betterinternalcontrolandsystem processes will be carriedon with all the
mergedbanks.

 Better&increased recognition: Those areas where SBI is not having

branches but its associate banks are having, upon the merger being
effected, the customer confidence and good report will be created because
SBI is having a good report for all itscustomers but the other associate
banks are not that good as the SBI. Also, theydo not enjoy all those
benefits as the SBI. Some sort of change in name from SBI associates to
SBI will have a good marketimpression and will generategoodwill.

BENEFITS OF THE MERGER

Indian Government has decided to merge the PSU banks under SBI. Well this
decision is more extroversive because it has both Pros and Cons. Firstly after
theamalgamation itcan withstand the strong competition from private sector
banks and can accumulate more resources to channelize trained manpower
across its branches. Secondly in terms of cost cutting, instead of setting up new
branches, it can utilize the already existing branches of its child banks. But if
you look at the other side it mightnot be beneficiary for the employees because
factors like experience, promotions,hikescomeintopicture.Now currentlySBI is
dwelled with lots of debts in terms of non-performing assets whereas banks
like SBH , SBP are in profits. So, there will be an extra burden on these child
banks if the amalgamation takesplace.
 Currently, no Indian bank featuresin thetop 50 banks of

theworld.Withthismerger,visibility at global level is likely toincrease.
 Branch rationalization, if executed well, would be one of the key synergy
benefits from the merger.
 The merger benefits include getting economies of scale and reduction in
the cost of doing business.
 After the amalgamation, it can withstand the strongcompetition from
private sector banks and can accumulate more resources to channelize
trained manpower across itsbranches.
 The merger of SBI and its associate banks will result in the network
increase of SBI and itsreach wouldmultiply.
 Cost savings on account of treasury operations, audit, technology, etc,
would lower cost-to- income ratio in the longterm.

 Any introduction of new technologies and features by SBI will uniformly

be available to all customers of SBI, its associates andsubsidiaries.
 Shares of SBI and its associates will post tremendous earnings in the
stock exchange thereby benefiting stakeholders.
 Despite having second largest population country, no Indian bank is in
thelist of top 50 world's largest bank. With this merger SBI will become
44th largest bank in the world by assets
 The bigger the bank, the better is the diversification ofits assets portfolio
and lesser chances that the bank will fail in thesystem.
 The merged entity will be able to tap into cheaper funds more easily and it
will also be able to rationalize the branches all over the country, to cut
down the operationcosts.
 As of now SBI alone has employee strength of more than 2 lakhs,
combining with all these banks it will cross 3 lakh baseand that is huge
terms ofemployment.
 With this merger SBI willbe ableto financemoreand
moremammothprojectsthatwill leadto economic development of
thecountry.
 SBI 'sreach and network will multiply, efficiency will likely to increase with
the rationalization ofbranches.
 Adoption of development of technologies in associate banks will befaster.
 Gross NPA and Net NPA of the combined entity will comedown.
 Capital adequacy will improve requiring less capital infusion

bygovernment.
 Strong presence in nook and corner ofthe country.

 After amalgamation with closure of duplicated branches, chances of

relocating branches in underservedareas.
 Redundancy of work force. Very soon we can expect a specialVRS.
Challenges Of Merger
 The merger can be a big challenge to the staff members in order to

maintain the integration of responsibility, roles, salary, and
pensionstructures.
 Due to rationalization of the many branches, the SBI group may face the
problems from the prospects ofpromotions.
 The regional customers like customers of SBT may face discomfort to deal
with such a major entity, the associate banks are on a totally different
footing as they have regional flavourand regional focus compared to
nationalistic SBIculture.
 The increased size of this bank group will result with a huge challenge to
the regulators in orderto
control such a big entity.
 The decision was for the well-being of the Economy andto

improveitsfinancialhealth.Themergerhas many long-term benefits that we
will experiencesoon.
 Immediate negative impact would be from pension liability provisions (due
to different employeebenefit structures) and harmonization of accounting
policies for NPA (non-performing assets) recognition.
Post the merger, SBI's employee costs rose by Rs 23 crore amonth.

Review of Literature
Mishra(2019) in her study states that the merger of five associate banks
with State Bank of India (SBI) will create a much bigger entity in the Indian
banking sector and will enable the giant to make one step closer to the list of
among the top global banks. The merger would make SBI a global-sized
bank and would be amongst the top 50 lenders in the world, with an asset
base of Rs. 37 trillion or over $555 billion. After the amalgamation it can
withstand the strong competition from private sector banks and can
accumulate more resources to channelize trained manpower across its
branches. In terms of cost cutting, instead of setting up new branches, it
can utilize the already existing branches of its child banks. The scale of
merger is mind boggling and SBI has rightfully started a lot of mapping and
home work to address the gaps.
KotnalJayashree (2016) explored in her paper titled, “The economic impact

of merger and acquisition on profitability of SBI” various motives of merger
in Indian banking industry. It also compares pre and post-merger financial
performance of merged banks with the help of financial parameters like,
Gross Profit margin, Net Profit margin, operating Profit margin, Return on
Capital Employed, Return on Equity, and Debt Equity Ratio. Independent T-
test used for testing the statistical significance and this test is applied not
only for ratio analysis but also effect of merger on the performance of banks.
This performance was tested on the basis of two grounds i.e., Pre-merger
and Post- merger. Finally the study indicates that the banks have been
positively affected by the event of merger

Tamragundi&Devarajappa (2016), examined in their study titled, “Impact

of mergers on Indian Banking Sector: A comparative study of Public and
Private Sector merged Banks” the impact of mergers on performance of
selected commercial banks in India. The impact of mergers on performance
of the banks has been evaluated from three prospective i) Physical
Performance of merged banks, ii) Financial Performance of Merged Banks
and iii) Share price performance. The study concludes that, Merger is a
useful strategy, through this Banks can expand their operations, serve
larger customer base, increases profitability, liquidity and efficiency but the
overall growth and financial illness of the bank can’t be solved from mergers
Dutta and Dawn (2012) in a paper “Merger and acquisitions in Indian

banks after liberalization: An analysis” investigates the performance of
merged banks in terms of its growth of total assets, profits, revenue,
deposits, and number of employees. The performance of merged banks is
compared taking four years of prior-merger and four years of post-merger.
The study findings indicate that the post-merger periods were successful
and saw a significant increase in total assets, profits, revenue, deposits, and
in the number of employees of the acquiring firms of the banking industry in
India.
Akhil (2011), in an analysis “Post-merger profitability of selected banks in

India” examined the impact of the banks merged in India from 1999 to
2011. Between 1999 and 2011, around 18 M&A took place in the Indian
banking sector. The study samples were six acquirer banks selected, three
of them were public sector banks and three were private sector banks. The
study used paired t-test. The study findings indicate that there is a

significant difference in the profitability ratios, like (growth of total assets

ratio, growth of net profit ratio, return on assets ratio, return on equity
ratio, and net interest margin ratio) of banks inthe post-merger scenario.
T. B. Rubinshtein (2011) in article titled “Estimating the effect of mergers

and acquisitions in Metallurgy.” explains that, the companies do not merge
without a good intention. Therefore, the effect of Merger and Acquisition
activities are determined by the synergetic effect when the impact of two
firms is greater than the sum of the effects resulted by each of them. The
study found that the size of the premium is the biggest factor in the
competition for Mergers and Acquisitions activities. Mergers and
Acquisitions activity as a strategy for expansion, modernization, and
technological innovation or for realizing complementary benefits (synergies)
has been pursued by the corporate world both in times of economic stability
or instability.
Khan (2011) in his study explored various motivations of Merger and

Acquisitions in the Indian banking sector. The result of the study indicated
that the banks have been positively affected by the event of Merger and
acquisitions. These results also suggested that merged banks could obtain
efficiency and gains through Merger and Acquisitions and could pass the
benefits to the equity share holders‟ in the form of dividend.
Devarajappa (2012) in his study explored various motives of merger in

Indian banking industry. It also compared pre and post merger financial
performance of merged banks with the help of financial parameters like,
Gross Profit margin, Net Profit margin, operating Profit margin, Return on
Capital Employed, Return on Equity, and Debt Equity Ratio. Finally the

study indicates that the banks have been positively affected by the event of
merger.
Kaur and Kaur (2010) examines the implication of mergers on the

cost efficiency along with the measurement of cost efficiency of
separate Indian commercial banks.. The research uses parametric and
non-parametric approaches to bank efficiency estimation. The findings
of the study report that the performance of public sector banks is not as
good as that of private sector banks in case of cost savings in the given
technology state. The reason as provided is allocative inefficiency as the
managers of banks are not so good at selection of optimal input mix at
specific prices.
Jayadev and Sensarma (2007) throw some light on the serious issues
of mergers in the banking sector of India with specific emphasis on the
viewpoints of the managers and shareholders. The findings show that in
case of forced merger neither the target bank nor the bidder bank
gain any abnormal return on the announcement of merger which
means that the bidder bank shareholders lose their wealth as the
merger is declared. On the other hand, in case of voluntary bans, the
target banks become a higher gainer than the bidder banks as a result
the shareholders of both banks benefit from the merger declaration.
In his other study he also found that many Indian banks exhibit potential cost
savings from mergers provided they rationalizetheir branch networks
although profit efficiency may not rise immediately.

Ishwarya in her study suggest that trend of merger in Indian banking sector
has so far been restricted to restructuring of weak and financially distressed
banks. The Indian financial system requires very large banks to absorb
various risks that have been emerged from operating in local and global
market. The prime factors for future mergers in Indian banking industry
included the challenges of free convertibility and requirement of large
investment banks. Therefore, the Government and policy makers should be
more cautious in promoting merger as a way to reap economies of scale and
scope.
Nandy and Baidya (2012) carried out an efficiency study the merger plan of
SBI using two basic Data Envelopment Analysis (DAE) models- CCR and
BCC with the objective of finding the technical advancements of banks. data
before and after merger of SBI and its associates is used for the analysis to
quantify the technical efficiency of hypothetically merged SBI. The results of
the study indicates that CCR efficiency is less than one which is an
indicator of less efficient bank. The study recommends that along with
merging and restructuring, reduction in input resource is also inevitable to
improve efficiency status.
Sushant (2011) in his study did a pre and post analysis of firms and
concluded that it had positive effect as their profitability, in most of the
cases deteriorated liquidity. After the period of few years of Merger and
Acquisitions (M&A) it came to the point that companies may have been able
to leverage the synergies arising out of the merger and Acquisition that have
not been able to manage their liquidity. Study showed the comparison of pre

and post analysis of the firms. It also indicated the positive effects on the
basis of some financial parameter like Earnings before Interest and Tax
(EBIT), Return on share holder funds, Profit margin, Interest Coverage,
Current Ratio and Cost Efficiency etc.
Ismail (2009) in his study found that the merger led to a significant
decrease in profitability and capitalization and an improvement in cost-
efficiency ratios, although the improvement was not large enough to offset
the profitability decrease. He suggested that low profitability levels,
conservative credit policies and good cost- efficiency status before merger
are the main determinants of industry adjusted cash flow returns and
provided the source for improving these returns after merger.
Sai and Sultana (2013), evaluates that the performance of the selected two
banks based on the financial ratios from the perspective of pre and post -
merger. To analyze the impact of merger paired t-test was applied to the
various financial ratios for before and after merger data. Based on the
analysis of Indian overseas bank data, it can be concluded that Net Profit
Margin, Operating Profit Margin, Return on Capital Employed, Return on
Equity and Debt- Equity Ratio there was significant difference but no
significant difference with respect to Gross profit margin.
Sony and Jain (2013) in their study compared pre and post-merger of
banks with use of financial ratios-Gross Profit Margin, Net Profit Margin,
Operating Profit Margin, Return on Capital Employed, Return on Equity and
Debt Equity Ratio. This study shows the changes represent in the

acquiredfirms based on financial parameters. The tools used t-test for

testing the statistical significance and effect of Merger and Acquisitions on
the performance of banks. To be concluded that the banks have been
positively affected by the event of Merger and Acquisition.
Azhagaiah& Kumar (2011), in their study tested hypothesis concerning

whether there is significant improvement in the corporate performance of
Indian manufacturing corporate firms following the merger event using
paired t-test. The study findings indicate that Indian corporate firms
involved in M&A have achieved an increase in the liquidity position,
operating performance, profitability, and reduce financial and operating risk.
In another study they examined a sample consisting of 20 acquiring firms
during the period 2007. They concluded that corporate firms in India appear
to have performed better financially after the merger, as compared to their
performance in the pre-merger period.
Goyal& Joshi (2011) in their paper, gave an overview on Indian banking

industry and highlighted the changes occurred in the banking sector after
post liberalization and defined the Merger and Acquisitions as per AS-14.
The need of Merger and Acquisition in India has been examined under this
study. It also gave the idea of changes that occurred after M&A in the
banking sector in terms of financial, human resource & legal aspects. It also
described the benefits come out through M&As and examined that M&As is
a strategic tools for expanding their horizon and companies .like the ICICI
Bank has used merger as their expansion strategy in rural market to
improve customers base and market share.

Yadav (2019) in his study reviewed research papers for the purpose of
providing an insight into the work related to Merger and Acquisitions
(M&As). After going through the available relevant literature on M&A and it
comes to know that most of the work done high lightened the impact of M&A
on different aspects of the companies. A firm can achieve growth both
internally and externally. Internal growth may be achieved by expanding its
operation or by establishing new units, and external growth may be in the
form of Merger and Acquisitions (M&A), Takeover, Joint venture,
Amalgamation etc. Many studies have investigated the various reasons for
Merger and Acquisitions (M&A) to take place, Just to look the effects of
Merger and Acquisitions on Indian financial services sector.

DATA ANALYSIS
Table & Figure 1: Operating Profit Ratio of State Bank of India before
Merging from 2015-2017
Year Operating Profit

Ratio
2014-2015 24.21
2015-2016 22.04
2016-2017 22.17
Operating Profit Ratio

24.5
24
23.5
23
22.5 Operating Profit
Ratio
22
21.5
21
20.5
2014-2015 2015-2016 2016-2017
Interpretation
1) In the above financial structure the SBI operating ratio value from
different years has beenimplemented

2) In the initial year 2014-2015 the operating profit was 24.21 value
whichis highest value comparing to the rest of the twoyears

3) When coming to 2016-2017 year the operating profit was came little
down when compared to the 2014-2015year

4) This operating ratio margin of three years is before merging SBI with its
associatebanks.
Table & Figure 2: Operating Profit Ratio of State Bank of India after
Year Operating Profit Ratio
2017-2018 19.98
2018-2019 24.51

30
25
20
15
10
0
2017-2018 2018-2019

Interpretation
1) By observing the above chart it is clearly shows that there is
afluctuation
2) In the year 2017-2018 the operating profit is19.98
4) Operating profit is increased in the year2018-2019
5) These financial fluctuations are taken after merging two yearsdata
Table & Figure 3: Net Profit Ratio of State Bank of India before
Years Net Profit

Ratio
2014-2015 0.68
2015-2016 0.45
2016-2017 0.42

Net Profit Ratio

0.8
0.7
0.6
0.5
0.4
Net Profit Ratio
0.3
0.2
0.1
0
2014-2015 2015-2016 2016-2017
Interpretation
1) In the above financial structure the SBI Net Profit Ratio value from

2) In the initial year 2014-2015 the operating profit was 0.68 value which
is highest value comparing to the rest of the twoyears

3) When coming to 2016-2017 year the net profit year was came little down
when compared to the 2014-2015year.
Table & Figure 4: Net Profit Ratio of State Bank of India after
Merging
from 2018-2019
Year Net Profit

Ratio
2017-2018 -0.21
2018-2019 0.02

Net Profit Ratio

0.05
0
2017-2018 2018-2019
-0.05
-0.1 Net Profit Ratio
-0.15
-0.2
-0.25
Interpretation
afluctuation
2) In the year 2017-2018 the operating profit is-0.21
4) Net profit is increased in the year2018-2019.
Table & Figure 5: Quick Ratio of State Bank of India before Merging
from 2015-2017
Year Quick
Ratio
2014-2015 18.06
2015-2016 13.83
2016-2017 11.94

Quick Ratio
20 18.06
15 13.83
11.94
10
Quick Ratio
0
2014-2015 2015-2016 2016-2017
Interpretation
1) In the above financial structure the SBI quick Ratio value from different
years has beenimplemented before merger

2) In the initial year 2014-2015 the quick Ratio was 11.02 value which is
highest value comparing to the rest of the twoyears

3) When coming to 2016-2017 year the quick ratio value was increased
when compared to the 2014-2015year.

Table & Figure 6: Quick Ratio of State Bank of India after Merging
from 2018-2019
Year Quick
Ratio
2017- 10.89
2018
2018- 11.02
2019

Quick Ratio
11.05 11.02
11
10.95
10.89 Quick Ratio
10.9
10.85
10.8
2017-2018 2018-2019
Interpretation
afluctuation
2) In the year 2017-2018 the Quick Ratio is13.83
3) In the year 2018-2019 the Quick ratio is18.06
4) Quick Ratio is increased in the year2018-2019
Table & Figure 7: Current Ratio of State Bank of India before

Year Current
Ratio
2014-2015 0.06
2015-2016 0.07
2016-2017 0.07

Current Ratio
0.075
0.07 0.07
0.07
0.065
0.06 Current Ratio
0.06
0.055
2014-2015 2015-2016 2016-2017
Interpretation
1) In the above financial structure the SBI Current Ratio value from

2) In the initial year 2014-2015 the Current Ratio was 0.06 value which is
highest value comparing to the rest of the twoyears

3) When coming to 2016-2017 year the Current Ratio value is similar, and
that means there are no enough current assets to pay off the current
liabilities.
Table & Figure 8: Current Ratio of State Bank of after before Merging
from 2018-2019
Year Current
Ratio
2017- 0.08
2018
2018- 0.09
2019

Current Ratio
0.095
0.09
0.09
0.085
Current Ratio
0.08
0.08
0.075
2017-2018 2018-2019
Interpretation
afluctuation
2) In the year 2018 the current ratio is0.08
3) In the year 2019 the current ratio is0.09
4) Current ratio is increased in the year2019 which means that the firms
can pay off their current liabilities with their current assets.
BALANCE SHEET OF THE YEAR 2016-2017

The total assets of Bank haveincreasedby 14.78% from`23,57,617.54

crore at theendof March 2016, to `27,05,966.30 crore as at the end
of March 2017.
During the period, the loan portfolio increasedby 7.34% from `

14,63,700.42 crore, to `15,71,078.38 crore.
Investments increased by 33.06%from`5,75,651.78 crore

to`7,65,989.63 crore as at the end of March 2017. A major portion
of the investment was in the domestic market in government
securities.
The Bank’s aggregate liabilities (excluding capital and reserves) rose
by 13.75% from `22,13,343.10 crore as on 31st March 2016 to
`25,17,680.24 crore as on 31st March 2017. The increase in liabilities
was mainly contributed by increase in deposits.
The deposits rose by 18.14% and stood at ` 20,44,751.39 crore as
on 31st March 2017 against `17,30,722.44 crore as on 31st March
2016.
The borrowingsdeclined marginally by 1.75% from `323,344.59 crore
at the end of March 2016, to `317,693.66 crore as at the end of March
2017

Findings & Conclusion

1) When coming to the financial analysis SBI is maintaining the good
stability in the operating ratio before merging 2014-2015 and right

now it was in good standard
2) During the merging year it has been come down from 24.21 to 22.17 in
the year of2016-2017

3) SBI is facing the instability value in the net profit when compared to
the before and after merging. Right now it is very low in the year
of2018-2019
4) While coming to the reasons of SBI apart from the parent bank the rest
of associate bank are having very less share value. So, if associate and
parent banks merged together there will be betterprofitability.
5) The total assets and liabilities increased after the merger took place.
6) In the current ratio SBI is maintaining a proper stability value when
compared to the before and after mergingyears.

7) SBI is in very low in the net profit after the merging and also the
stability of the bank is questionable. So, SBI should definitely look in

to it to be profitable and increase the share value of the bank. To avoid
that instability SBI should take the remedy measures for the next
financial years. Although this net profit of the bank is very low before
merging with banks but right now its very low. If it continues the bank
cannot be sustained in the market in the upcoming years. To manage
net profit ,bank definitely should look into NPA(net Performing assets)
activities if they are managed, the net profit may not increase very
high within a short time but it might bebalanced.

8) Basically the consolidation helped the SBI reduce 1805 branches and
rationalized 244 administrative offices. Staff expenses declined by 2.34

percent. In all , bank saved Rs.1099 crore in 2017-2018 financial year.
Suggestions
1) Currently SBI were having very low net profit value so to resolve it they
should be taken the proper remedy measures to be better in the next

financialyear.
2) Thebankstabilityalsoquestionableeventhisstudyalsorevealsthattomaintai
nthestabilityofSBIforthenextfinancialyears.
3) Even to overcome with instability the SBI can look in the Non-
performing asset to reduce in the future financialyears.

4) By reducing the Non-performing asset activities, it may not increase
the net profit value of SBI within one day but the instability of bank
can becontrolled.

Bibliography
[1] Govind Bhardwaj, Treasury Head and CEO Secretary at Noble Bank What is the reason behind SBI-
associate banks merger? What could be its pros and cons?, https://www.quora.com/What-is-the-reason-
behind-SBI-associate-banks-merger-What-could-beits-pros-and-cons
[2] https://www.researchgate.net/publication/326698273_Pre_and_Post_Merger_Financial_Performance_Anal
ysis_of_State_Bank_of_India
[3] https://shodhganga.inflibnet.ac.in/bitstream/10603/60862/11/11_chapter%201.pdf
[4] https://en.wikipedia.org/wiki/State_Bank_of_India,
[5] https://www.quora.com/What- is-the- impact-of-the-SBI- merger-on-the-Indian-economy
[6] https://www.quora.com/What- is-the-reason-behind-SBI-associate-banks- merger-What-could-

be-its-pros- and- cons.html#
[7] https://www.slideshare.net/anilp264/state-bank-ofindia-42148027
[8] https://economictimes.indiatimes.com/news/economy/policy/government- gives-green-signal-to- merger-of-
sbi-and-its-five-associate-banks/articleshow/57170478.cms


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St.

Joseph’s Institute of Management Commercial Banking: Group 10 – Project Report

ST. JOSEPH’S INSTITUTE OF MANAGEMENT

Primrose Road, Bangalore 560 025

A Study on the Merger of State Bank of India with its

Project Report for Commercial Banking

Submitted in partial fulfilment of the requirements for the award

Under the guidance of

Prof. Ravi Darshini

Sachin Powani – 19146

Ramya Ravi – 19133

Baby Francis – 19063

A Study on The Merger of SBI with its Associate Banks Page 1

Chapters Contents Page No:

Insights: INDIAN ECONOMY

Public Sector Banks Consolidation

The government is working on a consolidation agenda with a view to

Need for Consolidation

Indian banking sector is highly fragmented, especially in comparison with

 To protect the financial system and depositors’ money

 From regulatory perspective, monitoring and control of less number of

A Study on The Merger of SBI with its Associate Banks Page 3

Risks and Challenges

A Study on The Merger of SBI with its Associate Banks Page 4

Alternative Mechanism (AM) for Banks' Merger

A Study on The Merger of SBI with its Associate Banks Page 5

Entry of Joint stock banks and development of Cooperative movement have

A Study on The Merger of SBI with its Associate Banks Page 6

State Bank of India (SBI) is an Indian multinational, public sector banking

Key strengths of SBI

A Study on The Merger of SBI with its Associate Banks Page 7

Restructuring is required when the entities are facing financial crises or

A Study on The Merger of SBI with its Associate Banks Page 8

List of Directors on the Central Board of State Bank of India

Sl.no Name Designation Under section of SBI Act1985

1. ShriRajnishKumar Chairman 19(a)

MISSION: Committed to providing simple, Responsive and innovative

VISION: Be the Bank of choice for transforming India.

VALUES: Service | Transparency | Ethics | Politeness | Sustainability.

A Study on The Merger of SBI with its Associate Banks Page 9

is India's central bank, acquired a controlling interest in the Imperial Bank of

A Study on The Merger of SBI with its Associate Banks Page 10

A Study on The Merger of SBI with its Associate Banks Page 11

Under the PradhanMantri Jan DhanYojana of financial inclusion launched

A Study on The Merger of SBI with its Associate Banks Page 12

SBI operates several foreign subsidiaries or affiliates.

In 1989, SBI established an offshore bank: State Bank of IndiaInternational

Today, SBI (Mauritius) Ltd is having fully integrated 14branches- 13

State Bank of India (S.B.I.) Branch at TsimShaTsui, Hong Kong

In 1982, the bank established a subsidiary, State Bank of India, whichnow

A Study on The Merger of SBI with its Associate Banks Page 13

FORMER ASSOCIATE BANKS

A Study on The Merger of SBI with its Associate Banks Page 14

The plan for making SBI a mega bank with trillion-dollarbusiness by

On 15 February 2017, the Union Cabinet approved the merger of five

A Study on The Merger of SBI with its Associate Banks Page 15

•State Bank of Bikaner & Jaipur

•State Bank of Hyderabad

•State Bank of Mysore

•State Bank of Patiala

•State Bank of Travancore

A Study on The Merger of SBI with its Associate Banks Page 16

Mergers with SBI