BUSINESS

Parliament nod to bill for merger of subsidiary banks with State Bank of India

Parliament
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New Delhi, July 18: Parliament has approved the bill to merge six subsidiary banks with the State Bank of India (SBI) with the Rajya Sabha on Wednesday clearing the State Banks (Repeal and Amendment) Bill, 2017. The bill repeals the State Bank of India (Subsidiary Banks) Act, 1959, and State Bank of Hyderabad Act, 1956 besides amending the State Bank of India (SBI) Act, 1955. The State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore were constituted under the State Bank of India (Subsidiary Banks) Act, 1959.
The State Bank of Hyderabad and the State Bank of Patiala were wholly owned by the State Bank of India (SBI). The SBI had 90 per cent shareholding in the State Bank of Mysore, 75.07 per cent shareholding in the State Bank of Bikaner and Jaipur and 79.09 per cent shareholding in the State Bank of Travancore. For the purposes of “rationalisation of resources, reduction of costs, better profitability, lower cost of funds leading to better rate of interest for public at large, improved productivity and customer service,” the SBI, with the sanction of the central government and in consultation with the Reserve Bank of India (RBI), entered into negotiations with these subsidiary banks for acquiring the business, including assets and liabilities. (IANS)