New Delhi, Aug 10 The Lok Sabha on Thursday passed a bill to facilitate merger of five associate banks with the State Bank of India.
The State Banks Repeal and Amendment Bill, 2017, repeals two Acts — State Bank of India (Subsidiary Banks) Act, 1959, and State Bank of Hyderabad Act, 1956.
These Acts established the State Bank of Bikaner, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and State Bank of Hyderabad. These banks were subsidiaries of the State Bank of India (SBI).
The bill was passed consequent to the Union Cabinet granting its approval in February 2017, which allowed the SBI to acquire these subsidiaries.
After merging five associate banks including Bhartiya Mahila Bank, SBI has become one of the 50 biggest banks of the world.The main objective of this merger was to increase the capital of SBI.