SBI, State Bank of Indore to merge

State Bank of India

State Bank of India

Clearing the deck for the merger of State Bank of India and its associate, State Bank of Indore, the Reserve Bank is understood to have approved the amalgamation proposal.

The central bank has given approval for the merger, sources said.

However, official confirmation could not be immediately obtained from State Bank of India.

Last year, the central board of the bank gave approval for the merger. Following this, the Centre also gave in-principle approval for the proposal. SBI holds a 98 per cent stake in State Bank of Indore.

SBI has already announced a share swap ratio of 34:100 for the merger. It has agreed to give 34 shares of SBI for every 100 shares of State Bank of Indore held by minority shareholders.