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STATE BANK OF INDIA MERGER HAS MANY BENEFITS.<br />
State bank of India, the country’s largest<br />
lender approved the merger of its<br />
operations and five of its associate banks.<br />
State bank of Travancore, State bank of<br />
Mysore, state bank of Jaipur and Bikaner,<br />
state bank of Hyderabad, state bank of<br />
Patiala and Mahila bank will stand merged<br />
with SBI.<br />
HERE ARE EIGHT THINGS YOU<br />
SHOULD KNOW ABOUT THE<br />
MERGER:<br />
1) This is the first ever large scale<br />
consolidation in the Indian banking<br />
industry.<br />
2) The merger will create a banking<br />
behemoth with an asset book of Rs<br />
37 lakh crore.<br />
3) SBI will give 28 of its shares for<br />
every 10 shares held of state bank<br />
of Bikaner.<br />
4) It will give 22 of its shares for<br />
every 10 shares held of State Bank<br />
of Mysore.<br />
5) The lender will give 22 of its own<br />
shares for every 10 shares held of<br />
State Bank of Travancore.<br />
6) SBI will give 4, 42, 31,510 shares<br />
with face value of Re 1 for every<br />
100 crore equity shares of Bhartiya<br />
Mahila Bank.<br />
7) The merger will see SBI’s ranking<br />
approve in the bloomberg’s largest<br />
bank by asset ranking. It may well<br />
break through the 50-mark in the<br />
ranking.<br />
8) SBI’s asset base will now be five<br />
times larger than the second largest<br />
Indian bank, ICICI<br />
As far as loans go, it will be beneficial to<br />
borrowers since SBI's rates are lower (see<br />
box).<br />
Customers must do their cost-benefit
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