SBI- State Bank of Indore merger talks intensify

SBI-SBI001The long-awaited process of merger of India's largest lender, State Bank of India (SBI) with State Bank of Indore, has started again. This information was revealed on Monday.

The bank said that it would be issuing 1.16 lakh shares to the minority shareholders of State Bank of Indore. The face value of each share will be Rs. 10.

As of now, the swap ratio has been decided. SBI has agreed to pay the minority shareholders 34 shares of itself for every 100 shares of the subsidiary bank.

Talking about this, SBI said in a statement that the Central Bank had approved this merger during the Board meeting which took place on March 26. The statement further added that as per the current situation, post-merger the issued capital of SBI would rise to Rs. 635.08 crore as against the current level of Rs. 634.69 crore.

But, this is still subject to approval from the government.

It would be the second time since 2008 that SBI will merge one of its subsidiary banks with itself. Till now, State Bank of Saurashtra has been taken over.