SBI merger with associate banks approved, other moves also approved by Union Cabinet

a. SBI

b. OCI

c. PNB

d. Indian Bank

 

The Union Cabinet has approved the merger of State Bank of India (SBI), the country’s largest lender, and its associate banks — a move which is expected to bring the state-owned entity on a par with global lenders.

• The merged entity will have an asset base of about Rs.37 lakh crore, with nearly 24,000 branches and about 58,700 ATMs across the country as of March 2016-end .
• SBI and its associates employed 2.85 lakh people in 2014-15.
• The merger of SBI with its associates began eight years ago when SBI merged State Bank of Saurashtra with itself in 2008.
• In 2010, State Bank of Indore was also merged with the larger bank. SBI has since made repeated attempts to merge its units but none came to fruition due to a shortage of capital.
• The shares of SBI associate banks rose sharply after the cabinet approval .
• The Cabinet also gave its ex-post facto approval to the Memorandum of Understanding (MoU) between Taipei Economic and Cultural Centre in India and India Taipei Association in Taipei, for cooperation in agriculture and signing of an Air Services Agreement between India-Taipei Association in Taipei (India’s representative office in Taiwan) and Taipei Economic and Cultural Centre in India (Taiwan’s representative office in India) got the nod.
• The Cabinet also gave its approval for the enhancement of the age of superannuation of non-teaching and public health specialists of the Central Health Service (CHS) from 62 years to 65 years and doctors of General Duty Medical Officers sub-cadre of CHS to 65 years of age.
• An ex-post facto approval for a pact on labour cooperation between India and Saudi Arabia and a 10 per cent disinvestment of paid-up equity in Housing and Urban Development Corporation were also cleared.

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