News Update

ACC appoints Akshay Joshi, IRS, 2006 Batch, as Dy Secretary in Cabinet SecretariatCBDT issues detailed FAQs on ICDSAmended India-Singapore DTAA to come into force from April 1, 2017(See 'TII Brief' in TII)CBDT upset over officers speaking to mediaFinance Bill 2017 as Passed by Lok Sabha on 22nd March, 2017CBEC clarifies that Leggings (knitted or crocheted) merit classification under CTH 6115Rising Din Against Litigation - Do something before India boards GST BusCabinet okays abolition of Cesses & Surcharges in run-up to GST roll-outUnion Cabinet approves MoU between India & USA in Cyber Security + grants in-situ promotion to Indian Trade Service officers to SAGTrade imbalance being corrected: MinisterI-T - Declaration made under Kar vivad Samadhan Scheme would cover penalty & interest levied in case of tax arrears, rules HCCX - Sec 11B does not make any distinction between duty paid in cash and that by credit utilization: CESTATST - Pipeline or conduit laying executed for Govt as part of irrigation, water supply, or sewerage projects are not exigible to ST under CICS : CESTATCX Money value of technical know-how, drawing, design provided by FIPL to appellant for manufacture of power units for FIPL needs to be added in AV: CESTATTerror attack at UK Parliament - Attackers' car mow down pedestrians; Policeman and pedestrians stabbed; Attacker shot dead; More than 12 injuredGST to help reduce prices: FMIndustrial Incentives to Himachal PradeshEPFO invests in ETFs based on Nifty -50, sensex and CPSE IndexNatural Disasters: ISRO to provide vital inputs for forecastLok Sabha passes Finance Bill with 29 amendments & new ClausesUP Chief Minister's first diktat to officials - Do not chew pan masala on dutyUN ranks India 131th on Human Development IndexMHA issues advisory to ensure no insult to National flagGovt issues Energy saving Certificates on BEE recommendation
 
SBI gets Cabinet nod for acquiring 5 subsidiaries


By TIOL News Service

NEW DELHI, FEB 15, 2017: THE Union Cabinet has approved the acquisition by the State Bank of India of its subsidiary banks namely State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore

The Cabinet also approved the introduction of a Bill in Parliament to repeal the State Bank of India (Subsidiary Banks) Act, 1959 and the State Bank of Hyderabad Act, 1956.

The merger is likely to result in recurring savings, estimated at more than Rs 1,000 crore in the first year, through a combination of enhanced operational efficiency and reduced cost of funds.  Existing customers of subsidiary banks will benefit from access to SBI’s global network.  The merger will also lead to better management of high value credit exposures through focused monitoring and control over cash flows instead of separate monitoring by six different banks.

The acquisition under Section 35 of the State Bank of India Act, 1955 will result in the creation of a stronger merged entity. This will minimize vulnerability to any geographic concentration risks faced by subsidiary banks.  It will create improved operational efficiency and economies of scale.  It will also result in improved risk management and unified treasury operations. 

The acquisition of subsidiary banks of State Bank is an important step towards strengthening the banking sector through consolidation of public sector banks.  It is in pursuance of the Indradhanush action plan of the Government and it is expected to strengthen the banking sector and improve its efficiency and profitability.


POST YOUR COMMENTS