In a major development on Wednesday evening, Union Finance Minister, Arun Jaitley announced that the Union Cabinet has finally cleared merger of SBI and its associate banks.
The cabinet has approved mega merger of State Bank of India (SBI) with its five associate banks. The merger will add to the strength of SBI with assets of about Rs 23 lakh crore. SBI roughly comprises of one-fourth of the Indian banking system with an additional capital base of about Rs 4 lakh crore.
As per the approved merger ratios for each of the banks, the scheme provides for allotment as below:
28 equity shares of SBI for every 10 equity shares of State Bank of Bikaner and Jaipur.
22 equity shares of SBI for every 10 equity shares of State Bank of Mysore.
22 equity shares of SBI for every 10 equity shares of State Bank of Travancore.
4,42,31,510 equity shares of SBI for every 100 crore equity shares of Bhartiya Mahila Bank.
The share price of SBI has fallen by 0.68 per cent on bourses; and closed at Rs 268.65 in an intraday basis on Wednesday.
Source : http://www.dsij.in/article-details/articleid/18529/watch-out-sbi-and-its-associates-tomorrow-jaitley-clears-mega-merger.aspx#sthash.5L3nxmCy.dpuf
