State Bank of Saurashtra merger with State Bank of India gets government approval
July 24, 2008 -- The Union Cabinet today decided to issue an order sanctioning the Scheme of Acquisition of State Bank of Saurashtra by State Bank of India and to introduce Bill :-
a) repealing the State Bank of Saurashtra Act, 1950 in the Parliament.
b) to make consequential amendments in the State Bank of India (Subsidiary Banks) Act, 1959 to remove references to State Bank of Saurashtra wherever it occurs in the State Bank of India (Subsidiary) Banks Act, 1959.
The Bill would be called namely State Bank of India ( Subsidiary Banks) Amendment) Bill, 2008.
It is expected that merger of State Bank of Saurashtra with SBI would enable it to up-scale in terms of footprint, manpower and other resources. It would also enable it to face competition arising from globalization of the economy, apart from augmenting efficiency and enabling better management of risk. State Bank of Saurashtra is the smallest of its associate banks and operates in regions where SBI does not have a large presence.
In 1959, the government passed a legislation to help SBI acquire seven regional banks, including State Bank of Saurashtra.
SBI's subsidiaries have so far retained their own identity but SBI has merged some operations like treasury management, cross-selling of retail products, and sharing ATMs to cut costs.
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