State Bank of Saurashtra and State Bank of India to merge

New Delhi, July 24 : The Union Cabinet today gave its approval to the merger of the State Bank of Saurashtra with the State Bank of India to enable it to up-scale in terms of footprint, manpower and other resources.

The merger would also enable it to face competition arising from globalization of the economy, apart from augmenting efficiency and enabling better management of risk.

For the merger, the Union Cabinet today gave its approval to the following proposals:

i) to issue an order sanctioning the Scheme of Acquisition of State Bank of Saurashtra by the State Bank of India, in terms of section 35(2) of the State Bank of India Act, 1955

ii) 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.

ANI