The Government on Saturday gave one-year extension to SBI chief Arundhati Bhattacharya amid the lender’s consolidation with its associate banks.
Arundhati’s tenure as the chairperson was ending on October 6. However, it has been extended in order for her to oversee the merger of six smaller commercial banks into the country’s largest lender.
Earlier this year, the Cabinet gave its nod for the merger of State Bank of India (SBI) and its associate lenders and Bharatiya Mahila Bank (BMB) that would make the state-owned lender a global-sized bank.
SBI has five associate lenders — State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
Among the associate banks, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed.
The merged entity will become a banking behemoth, which could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over USD 555 billion, 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.
SBI had said that all its associate banks and BMB will be merged into it that will add an additional Rs 8 lakh crore to its assets.
Presently, SBI has close to 16,500 branches, including 191 foreign offices across 36 countries.
SBI first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged with it.
(With PTI Inputs)