The Mumbai-based bank will offer 22 shares for every 10 shares of State Bank of Mysore and State Bank of Travancore, an exchange filing showed on Thursday.
Advertisement
Banks Board Bureau chairman Vinod Rai said this week that the SBI merger would “test the waters” as far as the possibility of more such moves are concerned.
The entities are: State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and the Bharatiya Mahila Bank.
Prime Minister Narendra Modi’s government had in June given SBI the nod to start talks to acquire the assets of its subsidiaries and Bharatiya Mahila Bank.
The ratios approved are as follows: 28 SBI shares for every 10 shares of SBBJ, 22 shares of of SBI for every 10 equity shares of SBM and SBT and 4.42 cr shares of SBI for every 100 crore shares of BMBL.
“We have to take some decision (in formally opposing SBH’s merger with SBI)”, Rajender said.
With merger of all the five associates and BMBL, SBI will become a global-sized bank and could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over United States dollars 555 billion, with 22,500 branches and 58,000 ATMs. SBI has close to 16,500 branches, including 191 foreign offices spread across 36 countries.
Advertisement
SBI stocks opened the day at 246.05 points and closed 0.79 per cent high at 248.20 points on Sensex, while on Nifty, its the scrip opened at 246.90 and ended the day 0.79 per cent up at 248.20 points. The top bank in the list is the Chinese bank ICBC ($3,423 billion).
