SBI gets RBI nod for merger

SBI gets RBI nod for mergerIndia's largest bank, the State Bank of India (SBI) has got the necessary regulatory approval after the Reserve Bank of India (RBI) allowed the merger it was asking for.

SBI was seeking approval for the merger of State Bank of Indore with itself. This was told by sources close to the development.

However, no official has been given by any of the parties in question.

The approval for the amalgamation is already present with SBI since last year. The Central government has also given its green signal.

At present, SBI holds 98 per cent of the shares in State Bank of Indore. The swap ratio of 34:100 has already been announced by SBI.

This means that for every 100 shares of State Bank of Indore, 34 shares of SBI shall be given.

And for this purpose, SBI is planning to issue 1.16 lakh shares with a face value of Rs. 10 each. This will be given to the minority shareholders of State Bank of Indore.

SBI has also announced the increase in its issue capital from Rs 634.96 crore to Rs 635.08 crore.