Sbi and its associates merger

2
TABLE OF CONTENTS
1. AKNOWLEDGEMENT 05
2. DECLARATION 06
3. INTRODUCTION 07
4. COMPANY PROFILE 09
5. OBJECTIVE OF THE PROJECT 15
6. SBI PROFILE 16
7. HISTORY 21
8. OPERATIONS 23
9. FORMER ASSOCIATE BANKS 25
10. NON-BANKING SUBSIDIARIES 27
11. LISTINGS AND SHAREHOLDING 28
12. SBI AND ITS ASSOCIATES MERGER 29
13. REASON OF THE MERGER 36
14. BENEFITS OF THE MERGER 39
15. CHALLENGES 40
16. DISTRIBUTION OF THE SHARES 41
17. LITERATURE REVIEW 42
18. IMPACT OF THE SBI MERGER 45
19. RESEARCH METHODOLOGY 51
20. DATA INTERPRETATION AND DATA ANALYSIS 52
21 FINANCIAL PERFORMANCE 60
22. OBSERVATIONS AND FINDINGS 64
23. CONCLUSION 66
24. RECOMMENDATIONS AND SUGGESTIONS 67
25. BIBLIOGRAPHY 68

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AKNOWLEDGEMENT
With regard to my Summer Project with NSE. I would like to thank each and every one who offered help,
guideline and support whenever required.
First and foremost, I would like to express my gratitude to Mr. Avik Gupta for his support and guidance in
the Project work.
I extend my sincere gratitude to the following person in National Stock Exchange, Rashbehari where I
completed my research work.
I am extremely grateful to my college guide Mr. Abir Ghosh for his valuable guidance and timely
suggestions. I would like to thank all faculty members of Bengal Institute of Business Studies for the valuable
guidance.
I would also like to extend my thanks to my team members and friends for their support. And lastly, I would
like to express my gratitude to the Lord Almighty for seeing me through it all.

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DECLARATION
I hereby declare that the project work entitled “Study of the merger of SBI and their associate banks
and its probable impact on the Indian banking Scenario” submitted to Bengal Institute of Business
Studies, Kolkata, and is a representation of my work completed under the guidance of Mr. Abir Ghosh.
Prepared By: Biplab Kumar Mandal
Batch: 2017-2019
Bengal Institute of Business Studies
This is to certify that this report is submitted in partial fulfilment of the requirements of MBA
Program of Bengal Institute of Business Studies, Kolkata.
This report documented titled “A Study on the Impact of Mergerand Acquisition in the Mutual
Fund Industry” has been carried out by Biplab Kumar Mandal as part of the project at NSE, Kolkata,
during the internship program of 8 weeks under the guidance of ______
No project on the same lines has been submitted prior to any other college or institution.
Signature of the Professor Signature of the Student

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INTRODUCTION
Banking industry in India at glance Indian banking is the lifeline of the nation and its people. Banking
has helped in developing the vital sectors of the economy and usher in a new dawn of progress on the
Indian horizon. The sector has translated the hopes and aspirations of millions of people into reality. But to
do so, it has had to control miles and miles of difficult terrain, suffer the indignities of foreign rule and the
pangs of partition. Today, Indian banks can confidently compete with modern banks of the world. Before
the 20th century, usury, or lending money at a high rate of interest, was widely prevalent in rural India.
Entry of Joint stock banks and development of Cooperative movement have taken over a good deal of
business from the hands of the Indian money lender, who although still exist, have lost his menacing teeth.
In the Indian Banking System, Cooperative banks exist side by side with commercial banks and play a
supplementary role in providing need-based finance, especially for agricultural and agriculture-based
operations including farming, cattle, milk, hatchery, personal finance etc. along with some small industries
and self- employment driven activities.
SBI at glance The bank traces its ancestry to British India, through the Imperial Bank of India, to the
founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian
subcontinent. Bank of Madras merged into the other two "presidency banks" in British India, Bank of
Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn became the State Bank of
India in 1955. Government of India owned the Imperial Bank of India in 1955, with Reserve Bank of India
(India's Central Bank) taking a 60% stake, and renamed it the State Bank of India. In 2008, the government
took over the stake held by the Reserve Bank of India.
Key strengths of SBI State Bank of India is a banking behemoth and has 20% market share in deposits and
loans among Indian commercial banks.State Bank of India (SBI) is an Indian multinational, public sector
banking and financial services company. It is a government-owned corporation. As of 2016-17, it had
assets of 30.72 trillion (US$460 billion) and more than 14,000 branches, including 191 foreign offices
spread across 36 countries, making it the largest banking and financial services company in India by assets.
The company is ranked 232nd on the Fortune Global. 500 list of the world's biggest corporations as of
2016.

6
The Union cabinet on June 15, 2016 approved the merger of the five subsidiaries of State Bank of India
(SBI) with the parent, as the Indian banking system moves into a phase of consolidation. The cabinet
approved the merger of the subsidiaries namely State Bank of Mysore, State bank of Travancore, State
Bank of Hyderabad, State Bank of Patiala, State Bank of Bikaner and Jaipur along with BhartiyaMahila
Bank Ltd with SBI. SBI’s merger with subsidiaries will see the combined entity’s balance sheet at a
whopping Rs.37 trillion, making it one of the top 50 banks in the world. SBI first merged state bank of
Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged with it.
The five associate banks that have merged with SBI are: SBBJ(State Bank of Bikaner and
Jaipur),SBM(State Bank of Mysore),SBT(State Bank of Travancore), SBP(State Bank of Patiala) and
SBH(State Bank of Hyderabad).Those areas where SBI is not having branches but its associate banks are
having, upon the merger being effected, the customer confidence and good report will be created because
SBI is having a good report for all its customers but the other associate banks are not that good as the SBI.
Also, they do not enjoy all those benefits as the SBI.
Some Dort of change in name from SBI associates to SBI will have a good market impression and will
generate goodwill. Merger of the group entities of SBI is a way to restructure the Balance Sheet of the
entities. Restructuring is required when the entities are facing financial crises or there is a possibility of the
entity to not be able to meet out its existing liabilities. In corporate restructuring, some liabilities are set off
with realization of assets. In this case, some entities liabilities will be set off against the higher revalued
assets of the other entities in order to make a good and attractive Balance Sheet Size of the merged entity.
SBI have foreign subsidiaries like SBI International (Mauritius) Ltd, State Bank of India (California), State
Bank of India (Canada), INMB Bank Ltd, Lagos, Bank SBI Indonesia (SBII). SBI, non-banking
subsidiaries like SBI Capital Markets Ltd, SBI Fund Management Private Ltd, SBI Factors & Commercial
Services Private Limited, SBI Card & Payment Services Private Ltd, SBI General Insurance Company
Limited. SBI, joint ventures are SBI General Insurance Company Limited, SBI Life Insurance Company
Ltd.

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COMPANY PROFILE
NATIONAL STOCK EXCHANGE
National Stock Exchange of India (NSE) has been defining the future of the Indian financial market since
inception and is today one of the largest stock exchanges globally.
NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system
with national reach. NSE is regarded as the benchmark for its best practices and a model for the securities
industry in terms of systems, practices and procedures.
Having started its operations in June 1994, NSE operates a nation-wide, electronic market, connecting
investors in search of growth to the corporate issuers in search of capital, by providing innovative trading
technologies and products.
The investor community gets easy access to liquidity and markets through a network of more than 200,000+ NSE
terminals across 600 districts through more than 34000+ NSE member branches. In addition, investors can also
access the NSE platform through internet and mobile applications. NSE has also introduced services like DMA,
FIX capabilities and co-location facilities for more evolved categories of investors.
NSE is committed to operate a market ecosystem which is transparent and efficient; and at the same time
offers high levels of safety, integrity and corporate governance, providing ever- growing trading &
investment opportunities for investors.
The NSE Purpose
Committed to improve the financial well-being of people.
The NSE Vision
To continue to be a leader, establish global presence, facilitate the financial well-being of people.

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NSE Values
NSE is committed to the following core values:
 Integrity

 Customer focused culture

 Trust, respect and care for the individual

 Passion for excellence

 Teamwork
PRODUCTS AND SERVICES
The National Stock Exchange of India Limited (NSE) provides an integrated trading and clearing platform
for the primary and secondary markets. NSE introduced the concept of an electronic trading platform that
has been operational since 1994. Since then NSE has been at the forefront of technological advancement in
the trading platform
within the regulatory
framework prescribed
by the Securities
Exchange Board of
India (SEBI). Trading
System
The NSE trading system
called 'National
Exchange for
Automated Trading'
(NEAT) is a state-of-
the-art, fully automated,
screen-based trading
system which adopts the
principle of an order-
driven market. It

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facilitates an automated online system providing a nationwide anonymous, order-driven, screen-based
trading platform. In addition to the NEAT system, NSE has provided a web-based system, NOW (NEAT on
Web) that allows its users to trade in all the products being offered by NSE.
For the more sophisticated traders, NSE has also pioneered the co-location facility that allows traders to put
up their algorithms on rented servers placed inside the exchange premises. Financial Information Exchange
(FIX Protocol), the Industry-Standard Messaging Protocol for Equity, Derivatives and Currency markets is
achieved through NSE’s own connectivity software, TAP (Trading Access Point). NSE started trading in the
equities segment (Capital Market) on November 3, 1994 and within a short span of one year became the
largest exchange in India in terms of volumes transacted. Trading volumes in the equity segment have grown
rapidly with the average daily turnover increasing from `17 Crores during 1994-95 to `11,189 Crores (USD
2.03 billion) as on March 2013.
According to WFE statistics for the year ended 2012, NSE is the largest exchange in terms of number
of trades in equity shares globally.
TECHNOLOGY
NSE is always switched on for business. The NSE network is the largest private wide area network in the
country and the first extended C- Band VSAT network in the world. The unique IP-based solution woven
around Points of Presence (PoP) in major Indian cities has de-risked the system and made it possible to create
alternative layers of support to facilitate interruption-free trading.
NSE trading engines are benchmarked to manage throughput at sub millisecond response time. The Member
friendly Direct Market Access (DMA) and Algorithmic (algo) trading facilitates the algo markets through
narrow spreads, efficient trades, liquid markets and growing throughput.

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NSE provides diverse baskets of
market data for the order book bid
and asks - every second. The
collocation (colo) services of NSE
provide same latency to the
matching engine. All concerned
participants receive the same
bandwidth, two power supplies with
a UPS generator and air-
conditioning.
Over the years, NSE has reinforced
real-time surveillance by dedicated
professionals, multiple smart
applications and multiple models to
track trading patterns and deviations
in the shortest time with the
objective to protect market integrity.
The NEAT on Web (NOW) application provides specific solutions to members not owning technical
sophistication or large budgets, hence enabling members to focus on their core business, enhance access on the
move and plug into toll-free support. Access to multiple exchanges, smart order routing, historical and real time
intraday charting any many more user-friendly tools help in efficient execution from a single access.
NSE Really Simple Syndication (RSS) feeds highlight fresh material on NSE circulars, corporate
information, and intermediate cum end-of-day reports.
NSE Twitter delivers to subscribers, market information displayed on the NSE profile page every five
minutes on Nifty, Junior NIFTY, Currency Derivatives, and Interest Rate Futures.
The cutting-edge technology application makes it possible for NSE to empower members to strengthen their
services, widen the investor pool and deepen the investing culture in India.

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OBJECTIVES
 Understand SBI and its associate banks merger.
 Discover the reason behind the SBI and its associate banks merger.
 Benefits of SBI-associate banks merger.
 Challenges have to face by SBI.
 Share distribution of different Associated Banks and SBI.
 Know about Status of SBI after merger.
 Understand Impact of SBI itself.
 Understand Impact of India banking sector as well as Indian economy.
 Delisting of share of its associates banks.

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Study of the merger of SBI and their associate banks and its
probable impact on the Indian banking Scenario
List of Directors on the Central Board of State Bank of India
Sl. no Name Designation Under section of SBI Act 1985
1. Shri Rajnish Kumar Chairman 19(a)
2. Shri B. Sriram Managing Director 19(b)
3. Shri P.K. Gupta Managing Director 19 (b)
4. Shri Dinesh Kumar Khara Managing Director 19 (b)
5. Shri Sanjiv Malhotra Director 19 (c)
6. Shri Bhaskar Pramanik Director 19 (c)
7. Shri Basant Seth Director 19 (c)
8. Shri Girish K. Ahuja Director 19 (d)
9. Dr. Pushpendra Rai Director 19 (d)
10. Shri Chandan Sinha Director 19 (f)
11. Shri Rajiv Kumar Director 19 (e)
12. Dr.Purnima Gupta Director 19 (d)
MISSION: Committed to providing simple, Responsive and innovative financial solutions
VISION: Be the Bank of choice for transforming India.
VALUES: Service | Transparency | Ethics | Politeness | Sustainability.

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State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services company. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra.
On April 1, 2017, the State Bank of India, which was India's largest bank, merged with five of its associate
banks.
 State Bank of Patiala (founded 1917):
State Bank of Patiala (SBP) Bhupinder Singh, Maharaja of Patiala State, founded the Patiala State
Bank on 17 November 1917 to foster growth of agriculture, trade and industry. The bank combined
the functions of a commercial bank and those of a central bank for the princely state of Patiala. The
bank had one branch at Chowk Fort, Patiala, undivided India. The formation of the Patiala and East
Punjab States Union in 1948 led to the bank being reorganized, being brought under the control of
the Reserve Bank of India and being renamed Bank of Patiala. On 1 April 1960 Bank of Patiala
became a subsidiary of State Bank of India and was renamed State Bank of Patiala. Presently, State
Bank of Patiala has a network of 1445 service outlet, including 1314 branches, in all major cities of
India, Particularly in north India.
 State Bank of Mysore (founded 1913):
State Bank of Mysore was established in the year 1913 as The Bank of Mysore Ltd. under the
patronage of Maharaja Krishna Raja Wadiyar IV, at the instance of the banking committee headed
by the great Engineer- Statesman, Bharat Ratna Sir M.Visvesvaray. During 1953, "Mysore Bank"
was appointed as an agent of Reserve Bank of India to undertake Government business and treasury
operations, and in March 1960, it became a subsidiary of the State Bank of India under the State
Bank of India (subsidiary Banks) Act 1959. Now the bank is an Associate Bank under State Bank
Group and the State Bank of India holds 92.33% of shares. The Bank's shares are listed in
Bangalore, Chennai, and Mumbai stock exchanges. This bank has 976 branches and 10627
employees (June 2014) and the Bank has 772 branches (79%) in Karnataka State. The bank's
turnover in the year 2013-2014 was around US$19 Billion and Profit about US$46 Million.

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 State Bank of Bikaner & Jaipur (founded 1963):
SBBJ came into existence on 1963 when two banks, namely, State Bank of Bikaner (established in
1944) and State Bank of Jaipur (established in 1943), were merged. Both these banks were
subsidiaries of the State Bank of India under the State Bank of India (Subsidiary Bank) Act, 1959.
On 25 April 1966 SBBJ took over Govind Bank (Private) Ltd., Mathura, established on 8 February
1963. In 1984 SBBJ sponsored and established Ganganagar Kshetriya Gramin Bank as a Regional
Rural Bank. Thereafter, in 1985 SBBJ opened the Bikaner Kshetriya Gramin Bank, the second
Regional Rural Bank sponsored by it. The third Regional Rural Bank, sponsored by SBBJ was
Marwar Gramin Bank, which covered the districts of Pali, Jalore and Sirohi. On 12 June 2006,
SBBJ merged all three regional rural banks that it sponsored under the name MGB Gramin Bank,
with headquarters in Jodhpur. It is an associated bank of State Bank of India. As of 2015, SBBJ had
1,360 branches, mostly located in the state of Rajasthan, India. Its branch network out of Rajasthan
covers all the major business centres of India. In 1997, the bank entered the capital market with an
Initial Public Offering of 13, 60,000 shares at a premium of Rs 440 per share. For the year 2015-16
the net profit of the company was 850.60 Crore.
 State Bank of Hyderabad (founded 1941):
Hyderabad State Bank was established on 8 August 1941 under the Hyderabad State Bank Act, by
last Nizam of Hyderabad, Mir Osman Ali Khan now the new state of Telangana. It is one of the five
associate banks of State Bank of India and is one of the scheduled banks in India. In 1956, the
Reserve Bank of India took over the bank as its first subsidiary and renamed it as State Bank of
Hyderabad. Since 1956 it has been a subsidiary and largest associate bank of SBI. The bank has
performed well in the past decades, winning several awards for its banking practices. SBH has over
2,000 branches and about 18,000 employees. The Bank's business has crossed Rs. 2.4 trillion as on
31.12.2015 with a net profit of Rs. 8.12 billion. The bank has performed well in the past decades,
winning several awards for its banking practices.

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 State Bank of Travancore (founded 1945):
SBT was established in 1945 as the Travancore Bank Ltd, at the initiative of Travancore Divan C.
P. Ram swami Iyer. Following popular resentment against his dictatorial rule, the bank no longer
credits his role. Instead, the Bank now considers the Maharaja of Travancore as the founder, though
the king had little to do with the founding. Although the Travancore government put up only 25%
of the capital, the bank undertook government treasury work and foreign exchange business, apart
from its general banking business. Its registered office was at Madras. In 1960, it became a
subsidiary of State Bank of India under the SBI Subsidiary Banks Act, 1959, enacted by the
Parliament of India.
 Bharatiya Mahila Bank(founded 2013):
Bharatiya Mahila Bank (BMB) was an Indian financial services banking company based
in Mumbai, India. Former Indian Prime Minister Manmohan Singh inaugurated the system on 19
November 2013 on the occasion of the 96th birth anniversary of former Indian Prime
Minister Indira Gandhi. Although initially reported as a bank exclusively for women, the bank
allows deposits to flow from everyone, but lending will be predominantly for women. India is the
third country in the world to have a bank especially for women, after Pakistan and Tanzania.
SBI provides a range of banking
products through its network of branches in India and overseas, including products aimed at non-resident
Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities
throughout India.
This was the first ever large-scale consolidation in the Indian banking industry. With the merger, SBI
became one of the 50 largest banks in the world (balance sheet size of ₹33 trillion, 278,000 employees, 420
million customers, and more than 24,000 branches and 59,000 ATMs). SBI's market share was projected to
increase to 22 percent from 17 per cent. It has 198 offices in 37 countries; 301 correspondents in 72
countries. The company is ranked 232nd on the Fortune Global 500 list of the world's biggest corporations
as of 2016.

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The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank of India, making it
the oldest commercial bank in the Indian subcontinent. The Bank of Madras merged into the other two
"presidency banks" in British India, the Bank of Calcutta and the Bank of Bombay, to form the Imperial
Bank of India, which in turn became the State Bank of India in 1955. The Government of India took
control of the Imperial Bank of India in 1955, with Reserve Bank of India (India's central bank) taking a
60% stake, renaming it the State Bank of India. In 2008, the government took over the stake held by the
Reserve Bank of India.

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HISTORY
The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of
Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one
of three Presidency banks, the other two being the Bank of Bombay(incorporated on 15 April 1840) and
the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint
stock companies and were the result of royal charters. These three banks received the exclusive right to
issue paper currency till 1861 when, with the Paper Currency Act, the right was taken over by the
Government of India. The Presidency banks amalgamated on 27 January 1921, and the re-organised
banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock
company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which
is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1 July 1955, the
imperial Bank of India became the State Bank of India. In 2008, the Government of India acquired the
Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the
country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made SBI
subsidiaries of eight that had belonged to princely states prior to their nationalization and operational
takeover between September 1959 and October 1960, which made eight state banks associates of SBI. This
une with the first Five Year Plan, which prioritised the development of rural India. The government
integrated these banks into the State Bank of India system to expand its rural outreach. In 1963 SBI merged
State Bank of Jaipur (est. 1943) and State Bank of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI acquired in
1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore (est. 1942),
which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been
established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The bank had
been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new bank's first manager was
Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI
was the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

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There has been a proposal to merge all the
associate banks into SBI to create a "mega
bank" and streamline the group's
operations.
The first step towards unification occurred
on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the
number of associate state banks from seven
to six. On 19 June 2009, the SBI board
approved the absorption of State Bank of
Indore. SBI holds 98.3% in State Bank of
Indore. (Individuals who held the shares
prior to its takeover by the government
hold the balance of 1.7%.).
The acquisition of State Bank of Indore
added 470 branches to SBI's existing
network of branches. Also, following the
acquisition, SBI's total assets will
approach ₹10 trillion. The total assets of SBI and the State Bank of Indore were ₹9,981,190 million as of
March 2009. The process of merging of State Bank of Indore was completed by April 2010, and the SBI
Indore branches started functioning as SBI branches on 26 August 2010.

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OPERATIONS
SBI provides a range of banking products through its network of branches in India and overseas, including
products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are
located at important cities throughout India.
 Domestic presence
SBI has 18,354 branches in India.[14] In the financial year 2012–13, its revenue was ₹2.005
trillion (US$31 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly,
domestic operations contributed to 88.37% of total profits for the same financial year.
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in August
2014, SBI held 11,300 camps and opened over 3 million accounts by September, which included 2.1
million accounts in rural areas and 1.57 million accounts in urban areas.
 International presence
The Israeli branch of the State Bank of India located in Ramat Gan
As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest presence in
foreign markets among Indian banks.
SBI operates several foreign subsidiaries or affiliates.
In 1989, SBI established an offshore bank: State Bank of India International (Mauritius) Ltd in Mauritius.
SBI International (Mauritius) Ltd amalgamated with The Indian Ocean International Bank, which has been
doing retail banking business in Mauritius since 1979 with the new name, SBI (Mauritius) Ltd. Today, SBI
(Mauritius) Ltd is having fully integrated 14 branches- 13 Retail Branches covering major cities and town
of Mauritius, including Rodrigues, and 1 Global Business Branch at Ebene in Mauritius. Apart from
Branch Banking, customers also have the convenience of 24x7 ATM Banking at 18 ATMs across the
country. Bank also has a 24x7 robust Internet Banking Channel enabling customers to work from their
homes and offices.

22
SBI Sri Lanka now has three branches located in Colombo, Kandy and Jaffna. The Jaffna branch was
opened on 9 September 2013. SBI Sri Lanka, the oldest bank in Sri Lanka, celebrated its 150th year in Sri
Lanka on 1 July 2014.
State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong
In 1982, the bank established a subsidiary, State Bank of India, which now has ten branches—nine
branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont,
California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia,
San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield.
In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo–Nigerian Merchant Bank
and received permission in 2002 to commence retail banking. It now has five branches in Nigeria.
In Nepal, SBI owns 49% of SBI Nepal (State Bank in Nepal) share with Nepal Government owing the rest
and SBI NEPAL has branches throughout the country in each and every city as banking has become the
major part of daily life for Nepalese people.
In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest.
In Indonesia, it owns 76% of PT Bank Indo Monex.
The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin.[18]
In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million in
October 2005.
In January 2016, SBI opened its first branch in Seoul, South Korea following the continuous and significant
increase in trade due to the Comprehensive Economic Partnership Agreement signed between New Delhi
and Seoul in 2009.

23
FORMER ASSOCIATE BANKS
SBI acquired the control of seven banks in 1960. They were the seven regional banks of former Indian
princely states. They were renamed, prefixing them with 'State Bank of'. These seven banks were State
Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBN), State
Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of
Travancore (SBT). All these banks were given the same logo as the parent bank, SBI.
The plans for making SBI a mega bank with trillion-dollar business by merging the associate banks started
in 2008, and in September the same year, SBS merged with SBI. The very next year, State Bank of Indore
(SBN) also merged. In the same year, a subsidiary named Bharatiya Mahila Bank was formed.
The negotiations for merging of the 6 associate banks (State Bank of Bikaner and Jaipur, State Bank of
Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Bharatiya Mahila
Bank) by acquiring their businesses including assets and liabilities with SBI started in 2016. The merger
was approved by the Union Cabinet on 15 June 2016. The State Bank of India and all its associate banks
used the same blue Keyhole logo. The State Bank of India wordmark usually had one standard typeface,
but also utilized other typefaces.
On 15 February 2017, the Union Cabinet approved the merger of five associate banks with SBI. What was
overlooked, however, were different pension liability provisions and accounting policies for bad loans,
based on regional risks.

24
 State Bank of Bikaner & Jaipur
 State Bank of Hyderabad
 State Bank of Mysore
 State Bank of Patiala
 State Bank of Travancore
 Bharatiya Mahila Bank
were merged with State Bank of India with effect from 1 April 2017.

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NON-BANKING SUBSIDIARIES
Apart from its five associate banks (merged with SBI since April 1, 2017), SBI also has the following non-
banking subsidiaries:
 SBI Capital Markets Ltd
 SBI Funds Management Pvt Ltd
 SBI Factors & Commercial Services Pvt Ltd
 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI DFHI Ltd
 SBI Life Insurance Company Limited
 SBI General Insurance
In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the remaining
capital), to form a joint venture life insurance company named SBI Life Insurance company Ltd. In 2004,
SBI DFHI (Discount and Finance House of India) was founded with its headquarters in Mumbai.

26
LISTINGS AND SHAREHOLDING
As on 31 March 2017, Government of India held around 61.23% equity shares in SBI. The Life Insurance
Corporation of India, itself state-owned, is the largest non-promoter shareholder in the company with
8.82% shareholding.
Shareholders Shareholding
Promoters: Government of India 61.23%
FIIs/GDRs/OCBs/NRIs 11.17%
Banks & Insurance Companies 10.00%
Mutual Funds & UTI 8.29%
Others 9.31%
Total 100.0%
The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, and the National Stock Exchange of India, where it is a constituent of the CNX
Nifty. Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.

27
SBI & ITS ASSOCIATES MERGER
Merger and Acquisition is one of the major aspect of corporate finance world. M&A is defined as
consolidation of firms. Merger refers to combination of two or more companies to form one. With an
objective of wealth maximisation, companies keep evaluating different opportunities through the route of
merger or acquisition because it is believed that two separate companies together create more value
compared to being on an individual stand.
From the past few years Banking Industry is being consolidated to reap the benefits of mergers and
acquisitions. Bank in general terminology is referred to as a financial institute or a corporation which is
authorized by the state or central government to deal with money by accepting deposits, giving out loan and
investing in securities. The main role of Banks is economic growth, expansion of the economy and provide
funds for investment. In the recent times banking sector has been undergoing a lot of changes in terms of
regulation and effects of globalization. These changes have affected this sector both structurally and
strategically. With the changing environment many different strategies have been adopted by this sector to
remain efficient and to surge ahead in the global arena. One such strategy is through the process of
consolidation of banks which emerged as one of the most profitable strategy. There are several ways to
consolidate the banking industry; the most commonly adopted by banks is merger. There have been several
reforms in the Indian banking sector, as well as quite a few successful mergers and acquisitions, which
have helped it, grow manifold. The first and the most successful example of merger is of New Bank of
India merging with the Punjab National Bank (PNB). This was the first merger between nationalized banks.
And then there were a lot of mergers in banking industry which exemplified that mergers are beneficial for
an industry.
The most recent and largest merger in the history of banking industry was of State Bank of India with its 5
associate banks namely State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State
Bank of Mysore(SBM), State Bank of Patiala(SBP), State Bank of Travancore(SBT) and Bharatiya Mahila
Bank. It was on 1st April 2017 that "the SBI opened as 'one bank' and will continue to operate in the same
manner as before, post-merger" - Bhattacharya told the media.
Shares of State Bank of India (SBI) and its listed associate banks (State Bank of Bikaner, State Bank of
Mysore and State Bank of Travancore) gained 3-13 percent on the back of approval from the cabinet for
their merger.

28
At 09:27 hrs, the next day after approval, State Bank of India was quoting at Rs 273.20, up Rs 4.55, or 1.69
percent on the BSE. SBBJ was quoting at Rs 752.45, up 4.80 percent, SBM was trading at Rs 589 up 4.87
percent and State Bank of Travancore was quoting at Rs 590.10, up 5.38 percent. The rest two associate
banks —State Bank of Patiala and State Bank of Hyderabad — are unlisted. The merger will bring nearly a
quarter of all outstanding loans in India’s banking sector to SBI’s books.
Founded in 1806, Bank of Calcutta was the first Bank established in India, and over a period of time,
evolved into State Bank of India (SBI). SBI represents a sterling legacy of over 200 years. It is the oldest
commercial Bank in the Indian subcontinent, strengthening the nation’s trillion- dollar economy and
serving the aspirations of its vast population.
The Bank is India’s largest commercial Bank in terms of assets, deposits, branches, number of customers
and employees, enjoying the continuing faith of millions of customers across the social spectrum. SBI,
headquartered at Mumbai, provides a wide range of products and services to individuals, commercial
enterprises, large corporates, public bodies and institutional customers through its various branches and
outlets, joint ventures, subsidiaries and associate companies. SBI merged with its associate banks in order
to have increased balance sheet and economies of scale.
With this merger:
 SBI has entered into the league of top 50 global banks.
 It has now 24,017 branches and 59,263 ATMs serving over 42 crore customers
 SBI is now a banking behemoth with an asset book of Rs 37 lakh crore.
 The merged entity will have one-fourth of the deposit and loan market, as the SBI's market share
will increase from 17% to 22.5-23%.
 SBI's asset base is now five times larger than the second largest Indian bank, ICICI Bank. Apart
from these facts, there are many perceived gains as well: the government, as shareholder, feels that
now it will have six less capital-hungry banks to worry about. It was expected that a larger
institution will be better equipped to deal with sticky loans, thereby enabling fresh credit outflows
to productive sectors. Thus Productivity and efficiency are also among the expected benefits.

29
But these benefits were questionable due to SBI's legacy and ownership structure. A former SBI chairman
had once remarked that reforming SBI was trying to make an elephant dance. Even discounting for
exaggeration, according to the statement, a larger and unmanageable bank is getting even larger. The
merger seems to overlook a critical, post-crisis concern - the too-big- to-fail (TBTF) question. The TBTF
theory posits that some institution is so large and intricately interconnected with different parts of the
economy that failure can create a systematic shock. This forced many government to bail out large
financial institutions with taxpayer money. It might also be instructive to note that many countries have
been formulating preventive TBTF regulations. Australia, for example, has prohibited any merger between
the country's four largest banks.
This whole merger process was something like a short gun wedding, with not enough opportunity to pause
and ponder. There were many imponderables involved in this big merger, for example, the overlap in the
combined physical network, the people question, or integrating disparate back- end systems and processes.
Most recently the issue of employees has also come up. State Bank of India’s mega merger with its
associate banks has been anything but smooth for some of the latter’s employees. Whereas Officers and
clerks working for the erstwhile associate banks feel that they have been given a raw deal with several
instances of arbitrary transfers and many officers losing out on their seniority post the transfer. A senior
official of the association said the employees are facing increased working hours as the servers at SBI are
unable to handle the traffic, and they (the staff) are still adjusting to the new working conditions. There
have been several instances of arbitrary transfers with allegations that SBI has not been following the rules
governing transfers. Aggrieved SBI had filed a counter petition arguing that it was strictly complying with
all the stipulations and safeguarding the interests of the employees of the associate banks and denied all
allegations.
"The merger will affect the seniority of top officials of Associate Banks and will also result in
redeployment or loss of jobs of some workmen and closure of branches and finally, the banks might lose
some of their regular customers," said C.H. Venkatachalam, AIBEA general secretary.
The bigger question was the impact that the merger would have on the health of SBI. Cumulative bad loans
of the five associate banks were as big as 35% of the bad loans of SBI. Their slippage ratio stands at 20%
and credit costs have deteriorated to 5.56%.

30
Also, their Non-Performing Asset (NPA) were around 4 times the NPAs of SBI alone. When these banks
having deteriorating conditions join SBI, they will have adverse effect on SBI's health.
No doubt, the revenue will increase, but at what cost? What we need is not big, but strong, efficient and
vibrant banks. In order to understand the current scenario and throw light on the impact of merger on SBI,
A comparison is drawn between pre-merger entities ( before merger SBI and associate banks) and post-
merger entity (after merger - the consolidated bank).
The merger ratio
As per the merger proposal, SBBJ shareholders will get 28 shares of SBI (Rs 1 each) for every 10 shares
(Rs 10 each). Similarly, SBM and SBT shareholders will get 22 shares of SBI for every 10 shares. In the
case of Bharatiya Mahila Bank, 4,42,31,510 shares of SBI will be swapped for every 100 crores of Rs 10
each.
Biggersize
With merger of all the five associates and BMBL, SBI will have an asset base of Rs 37 trillion (Rs 37 lakh
crore) or over $555 billion, with 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.
Further, SBI's market share will increase nearly to 22 percent from 17 percent. Post the share-swap ratio,
the combined entity's market capitalisation after the merger will be nearly Rs 2 lakh crore.
Also, SBI has close to 16,500 branches, including 191 foreign offices spread across 36 countries. It first
merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged.
According to Bhattacharya, since SBI is upgrading processes to improve customer service, the customers of
the merged smaller banks will get a better deal in loan rates after the merger. "We are already in the process
of greatly enhancing our efforts for bettering customer service. We will be able to bring substantial value to
the customers of our associate banks as we seek to make them our customers," said Bhattacharya.

31
What analysts say
According to Reliance Securities, swap ratio was largely in line with its expectation. "We expect stock
price of SBM would correct by 10-12 percent and envisage marginal rise in stock prices of SBBJ & SBT.
Notably, we do not expect any major price action in SBI counter as the swap ratio being largely neutral."
Moreover, we believe that SBI will continue to surprise positively on operating and asset quality fronts in
coming quarter, as it has been able to manage cleaning up of its loan book effectively. We reiterate our buy
recommendation on the stock with an unrevised SOTP-based target price of Rs 272 a share.
However, brokerage firm Relegate sees the merger will not materially improve SBI's asset quality as the
asset quality of its associate banks is weak.
"In addition, the clean-up exercise should continue for associate banks in Q2FY17 since their AQR list is
substantially different from SBI. This would further deteriorate their asset quality,".

32
News
SBI's Arundhati Bhattacharya says mergers can reduce state-run banks' need for govt capital
Mumbai: State Bank chairman Arundhati Bhattacharya today called for more consolidation among the
public sector banks, saying this could reduce their dependence on government for capital.
The statement comes after SBI merged all its
five subsidiaries and Bharatiya Mahila Bank,
which resulted in a massive spike in its
revisions and bad loans ratio that touched
double digits in the first consolidated results
announced earlier this month, though this led
to the creation of the 45th largest bank in the
world. The merger of the state-run banks
should open up more capital generation
avenues, both internally and from the market,
for the merged entity, she said.
"From a government point of view, besides an increased stream of dividends, which forms a part of their
non-tax revenue, mergers of state-run banks can also reduce the dependence of the merged bank on
government for the future capital infusion," Bhattacharya said while delivering the 14th Nani A Palkhivala
memorial lecture here this evening.
Merger of public sector banks must increase the role of internal and market resources and thus reduce
governments dependency, she explained.
Stating that the banking sector is at critical juncture and is faced with challenges like capital constraints due
to their government ownership, Bhattacharya said, "these issues call further consolidation".
From an institutional and investors point of view, the available market float of a merged banks shares must
appreciate, she said, adding these considerations has at least guided the merger decision of SBI.

33
Bhattacharya said after the merger, SBI has moved to a return on equity (RoE) based budgeting, along with
risk-based budgeting in managing its portfolio.
She said that consolidation in the banking sector will lead to greater concentration of payment and
settlement flows as there are fewer parties in the financial sector.
"Now, is this also a hindrance or is this going to be beneficial but given the cyber security risks that we
currently run, probably this could also be beneficial," Bhattacharya said.
However, she warned that operational risks could rise post-merger, as the size of operations enlarge and
since the distance between management and operational personnel is greater, the administrative systems
become more complex.
"There is a view that exercise of market power by larger merged banks can also alter the monetary
transmission operating through bank lending or borrowers without direct access to financial sector," she
said, adding, "so mergers may increase systemic risks and mergers guided only by pure capital adequacy
considerations are ill-advised".
Published Date: Aug 23, 2017
http://www.firstpost.com

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REASON OF THE MERGER
State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM),
State Bank of Patiala (SBP) and State Bank of Travancore (SBT), besides Bharatiya Mahila Bank (BMB),
merged with SBI with effect from April 1, the bank said in a statement.
Govt. Aid to 1 MergedSBI Group: Firstly, the SBI and associates are one of the largest Govt.
undertaking of the Central Govt. whom annual allocation of subsidy and contribution towards Bad Debt
Recovery and Share Capital has to be made by the Indian Govt. There is practically no sense of giving aid
to so many banks separately when it can be given to a single entity. Govt. Aid is for sure to be given to
these banks and not just SBI and group but all the banks. So, Govt. Aid to a single SBI merged bank will be
much easier in terms of accountability.
Bad performance of Banking Sector: Because of the current market situation and what will be in future,
most of the Bank’s profitability has come done from quite a few previous years. Many Bank’s Share prices
have also fallen drastically because of the expectation of under-performance of the Banks. The State Bank
group is no exception to the same and the same applies to it also. SBI is the holding company and the other
are its subsidiaries. So, in order to show better profitability, merger of the Banks is an essential
requirement.
Bad Loans & Inability to Recover: SBI and group is the one of the largest banking sector entities who
have crores and crores of Bad Loans which are not recoverable. Some entities Gross NPA has reached up
to 20%. Due to huge bad loans, an internal corporate restructuring is required for all the associate group
entities, otherwise in upcoming few years, few of them may even not survive in the market.
Corporate Restructuring: Merger of the group entities of SBI is a way to restructure the Balance Sheet of
the entities. Restructuring is required when the entities are facing financial crises or there is a possibility of
the entity to not be able to meet out its existing liabilities. In corporate restructuring, some liabilities are set
off with realization of assets. In this case, some entities liabilities will be set off against the higher revalued
assets of the other entities in order to make a good and attractive Balance Sheet Size of the merged entity.

35
Bigger Bank: By merging all the associate entities, SBI will become a much bigger and better bank as it
will be catering to al large segment of customers as from its current position. It will be able to make many
services convenient to the customers through a single bank rather than approaching other associated banks.
It will have larger customer base, hence chances of earning good profitability over its deposits. It will have
the advantage of Synergy with the associated banks. No high integration cost will be paid since the set-up
is almost similar. It will have good asset portfolio. All-over, good report will be created amongst its
customers.
Better Management: Since it will become one big merged Bank, it will have only a management system
rather than having different management set-up over the associate banks. Because of single management,
efficiency and effectiveness of the business processes will be increased. Single circular will be issued for
all the merged Banks for operational and management supervision. Better internal control and system
processes will be carries on with all the merged banks. 7. Better increased recognition: Those areas where
SBI is not having branches but its associate banks are having, upon the merger being effected, the customer
confidence and good report will be created because SBI is having a good report for all its customers but the
other associate banks are not that good as the SBI. Also, they do not enjoy all those benefits as the SBI.
Some dort of change in name from SBI associates to SBI will have a good market impression and will
generate goodwill.

36
BENEFITS OF THE MERGER
Indian Government has decided to merge the PSU banks under SBI. Well this decision is more extroversive
because it has both Pros and Cons. Firstly after the amalgamation it can withstand the strong competition
from private sector banks and can accumulate more resources to channelize trained manpower across its
branches. Secondly in terms of cost cutting, instead of setting up new branches, it can utilize the already
existing branches of its child banks. But if you look at the other side it might not be beneficiary for the
employees because factors like experience, promotions, hikes come into picture. Now currently SBI is
dwelled with lots of debts in terms of non-performing assets whereas banks like SBH , SBP are in profits.
So, there will be an extra burden on these child banks if the amalgamation takes place.
 Currently, no Indian bank features in the top 50 banks of the world. With this merger, visibility
at global level is likely to increase.
 Branch rationalization, if executed well, would be one of the key synergy benefits from the
merger.
 The merger benefits include getting economies of scale and reduction in the cost of doing
business.
 After the amalgamation, it can withstand the strong competition from private sector banks and
can accumulate more resources to channelize trained manpower across its branches.
 The merger of SBI and its associate banks will result in the network increase of SBI and its
reach would multiply.
 Cost savings on account of treasury operations, audit, technology, etc, would lower cost-to-
income ratio in the long term.
 Any introduction of new technologies and features by SBI will uniformly be available to all
customers of SBI, its associates and subsidiaries.
 Shares of SBI and its associates will post tremendous earnings in the stock exchange thereby
benefiting stake holders.
 Despite having second largest population country, no Indian bank is in the list of top 50
world's largest bank. With this merger SBI will become 44th largest bank in the world by
assets

37
 The bigger the bank, the better is the diversification of its assets portfolio and lesser chances
that the bank will fail in the system.
 The merged entity will be able to tap into cheaper funds more easily and it will also be able to
rationalize the branches all over the country, to cut down the operation costs.
 As of now SBI alone has employee strength of more than 2 lakhs, combining with all these
banks it will cross 3 lakh base and that is huge terms of employment.
 With this merger SBI will be able to finance more and more mammoth projects that will lead
to economic development of the country.
 SBI 's reach and network will multiply, efficiency will likely to increase with the
rationalization of branches.
 Adoption of development of technologies in associate banks will be faster.
 Gross NPA and Net NPA of the combined entity will come down.
 Capital adequacy will improve requiring less capital infusion by government.
 Strong presence in nook and corner of the country.
 After amalgamation with closure of duplicated branches, chances of relocating branches in
underserved areas.
 Redundancy of work force. Very soon we can expect a special VRS.

38
WHAT ARE THE CHALLENGES
 The merger can be a big challenge to the staff members in order to maintain the integration of
responsibility, roles, salary, and pension structures.
 Due to rationalization of the many branches, the SBI group may face the problems from the
prospects of promotions.
 The regional customers like customers of SBT may face discomfort to deal with such a major
entity, the associate banks are on a totally different footing as they have regional flavour and
regional focus compared to nationalistic SBI culture.
 The increased size of this bank group will result with a huge challenge to the regulators in order to
control such a big entity.
 The decision was for the well-being of the Economy and to improve its financial health. The merger
has many long-term benefits that we will experience soon.
 Immediate negative impact would be from pension liability provisions (due to different employee
benefit structures) and harmonization of accounting policies for NPA (non-performing assets)
recognition.
 Post the merger, SBI's employee costs could rise by Rs 23 crore a month.

39
DISTRIBUTION OF SHARE
The merger process of the associates banks—State Bank of Bikaner and Jaipur (SBBJ), State Bank of
Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of
Hyderabad (SBH)—will take effect from 1 April.
The executive committee of the central board of SBI fixed 17 March as the record date for determining the
eligible minority shareholder of SBBJ, SBM and SBT entitled to receive equity shares of face value of Re1
each, of SBI at the agreed swap ratio, the bank said in a regulatory filing on stock exchanges.
The board of SBI earlier approved the merger plan under which SBBJ shareholders will get 28 shares of
SBI (Re1 each) for every 10 shares (Rs10 each) held. Similarly, SBM and SBT shareholders will get 22
shares of SBI for every 10 shares.
The shares of the listed associates will be delisted from stock exchanges following the merger. The entire
undertaking of all five associate banks shall stand transferred to and vested in State Bank of India from 1
April, it said.
SBI had approved separate schemes of acquisition of SBP and SBH. There will not be any share swap or
cash outgo as they are wholly-owned by SBI.
According to the scheme of merger, the pay and allowances offered to employees or officers of the five
associates will not be less than what they would have otherwise drawn. SBI first merged State Bank of
Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged with it.
Once the merger takes effect, existing customers of the subsidiaries will benefit from the access to SBI’s
global network. It will also lead to better management of high value credit exposure through focused
monitoring and control over cash flows instead of separate monitoring by six different banks.
With the merger of all the five associates, SBI is expected to become a lender of global proportions with an
asset base of Rs37 trillion (Rs37 lakh crore) or over $555 billion, 22,500 branches and 58,000 ATMs. It
will have over 50 crore customers.

40
LITERATURE REVIEW
There exists a great amount of literature on bank merger and acquisition in developed countries. But there
has been little research effort on this issue in India, particularly using the approach – DEA. There are two
types of studies relating to bank merger: Ex–ante studies, also called the event studies analysis considers
the impact of mergers on market value of equity of both bidder and target banks on announcement of
merger and Ex-post studies that on the other hand assesses the effect of merger on banks’ performance and
efficiency by comparing pre and post-merger performance of banks. Berger et al. (1999) provides an
outstanding literature review on both these issues. Hence we review some of the important studies. In the
first issue identified above, Pilloff and Santomero (1997) reported that most studies fail to find a positive
relationship between merger activity and gains in either performance or stockholder wealth. But studies by
Cornett and Tehranian (1992), Hawawini and Swary (1990), Hannan and Wolman (1989), and Neely
(1987) report a positive reaction in the stock prices of target banks and a negative reaction in the stock
prices of bidding banks to merger announcements. A recent study by Chong et al. (2006) on mergers of
Malaysian banks shows that forced mergers have destroyed wealth of acquired banks. On the second issue
of the bank merger literature, Vennet (1996) studied the impact of mergers on the efficiency of European
Union banking industry by using some key financial ratios and stochastic frontier analysis for the period
1988-93 and found that merger improve the efficiency of participating banks. Akhavein et al. (1997)
examined the price and efficiency effect of mega mergers on US banking Indus- try and found that banks
have experienced higher level of profit efficiency than during post merger period. Berger (1999) found very
little improvement in efficiency for merger and acquisition of either large or small banks. Cornett and
Tehranian (1992) and Spindit and Tarhan (1992) provided evidence for increase in post-merger operating
performance. But the studies of Berger and Humphrey (1992), Piloff (1996), and Berger (1997) do not find
any evidence in post-merger operating performance. Some other type of studies examined the potential
benefits and scale economies of mergers. Linderman (2000) explored potential diversification benefits to be
had from banks merging with non-banking financial service firms. Berger and Humphrey (1994) concluded
in a survey of US studies on recent scale economy that the average cost curve has a relatively flat U-shape
with only small banks having the potential for scale efficiency gains and usually the measured economies
are relatively small.

41
Studies on scope economies found no evidence of these economies In Indian context, Jayadevetal. (2007)
re- veiled that in the case of forced mergers, neither the bidder nor the target banks’ shareholders had
benefited. But in the case of voluntary mergers, the bidder banks’ shareholders gained more than those of
the target banks. Another study by Jayadevetal. (2010) found that many Indian banks exhibit potential cost
savings from mergers provided they rationalise their branch networks although profit efficiency may not
rise immediately. Gourley et al. (2006) analysed the efficiency gains from mergers among Indian banks
over the period 1991-92 to 2004-05 and observed that the merger led to improvement of efficiency for the
merging banks. Reserve Bank of India (2008) agreed with this observation and found that public sector
banks have been able to get higher level of efficiency than private sector banks during post-merger period.
But, Ravichandran et al. (2010) suggested that the mergers did not seem to enhance the productive
efficiency of the banks. Kaur et al. (2010) examined empirically the cost efficiency of bank mergers during
post reform period and found, to some extent, merger programme has been successful in Indian banking
sector. The Government and Policy makers should not promote merger between strong and distressed
banks as a way to promote the interest of the depositors of distressed banks, as it will have adverse effect
upon the asset quality of the stronger banks. In sum, the international and Indian experience does not
provide strong evidence on merger benefits in the banking industry. However, there are no studies existing
in the literature in the same direction as the present study adopts. Therefore, the present study will be able
to throw further light on the existing banking merger literature by exploring the efficiency status of
proposed merger of SBI and its subsidiaries based on the DEA evaluation and anticipate whether this
merger scheme will produce a fully efficient bank in the Indian banking industry.

42
List of mergers during post reform period in India

43
IMPACT OF SBI MERGER
As a result of merger SBI will be among top 50 large banks of the world. Now SBI will have an asset base
of Rs. 37 lakh crores. Presently number of SBI offices along with its associates are 809 which is likely to
be reduced to approximately 687 after merger.
Employees will be reallocated mainly to customer interface operations of those branches which are likely
to be shut down. The task has been lightened as around 13000 employees have retired this year and 3600
have taken voluntary retirement. However, bank will hire less employees in this financial year. Out of total
asset base of SBI, 28 shares of SBI will be given to shareholders of SBBJ who had 10 shares and
shareholders of SBM and SBT having 10 shares will get 22 SBI shares each as only these associate banks
are listed with stock exchange. Rest two banks i.e. SBP and SBH are not listed with the stock exchange.
Effects of merger on customers shall have a dual effect. Most of the continuing branches are working in the
manner they used to work. Even the rate of interest they are offering on deposits is still same till the end of
that contract. However, NEFT/RTGS charges are applicable to SBI are being charged. Online transactions
of associate banks can now be done from website of SBI using previous username and password.

44
Impact of SBI mergeron SBI
SBI merger impact: 47% of associate banks' offices to shut down
State Bank of India (SBI), which will see five associate banks merge into it on April 1, has decided to shut
down almost half the offices of these banks, including the head offices of three of them. This process will
start from April 24.
"Out of the five head offices of the associate banks, we will retain only two. Three head offices of the
associate banks will be unbound along with 27 zonal offices, 81 regional offices and 11 network offices of
the associate banks," SBI Managing Director Dinesh Kumar Khara told IANS in an interview.
"We will keep their structure in place till April 24 and, post that, we will start dismantling the associate
banks' controlling offices, which includes head offices, regional offices, zonal offices and network offices".
The five associate banks that will merge with SBI are: SBBJ (State Bank of Bikaner and Jaipur), SBM
(State Bank of Mysore), SBT (State Bank of Travancore), SBP (State Bank of Patiala) and SBH (State
Bank of Hyderabad).
SBI is India's largest bank with assets of Rs 30.72 lakh crore and figures at No. 64 in the global ranking
of banks (as of December 2015; December 2016 ranking is still awaited). Post-merger, with assets of
approximately Rs 40 lakh crore, it will be among the top 50 banks in the world. SBI Chief Economist
Soumya Kanti Ghosh told IANS that, post-merger, the bank will be at No. 45.
The shut-down move is to avoid overlapping offices in the same area and "we intend to remove any kind of
duplicity in the controlling structure".
The five associate banks will cease to exist as legal entities and become a part of SBI from April 1, but the
various merger processes will start only after April 24, once the balance sheets of the five entities are
audited and added.

45
"We will have to get the balance sheets of the associate banks audited a day prior to the merger, that is, on
March 31. The balance sheets of the banks will be drawn up and added; it takes 15-20 days. Soon after the
audit is done, the branches will be completely merged with SBI".
There are currently 550 SBI offices while its associate banks have 259. The target for the number of
controlling offices after the merger is 687 -- a reduction of 122 offices.
Employees directly affected by these shutdowns -- estimated at 1,107 -- will be redeployed, mostly in
customer-interface operations.
"The net result is that people in controlling functions will be available for deployment on the ground for
improving reach to the consumer".
"There are about 5-7 people in every regional office and 20-odd people in each zonal office. One regional
office controls 30-40 branches, while 4-5 regional offices are controlled by one zonal office".
The associate banks have also offered a Voluntary Retirement Scheme (VRS) to employees who do not
wish to relocate. "VRS is only an option, else they will be relocated. They will have a different role”.
Along with the winding-up of these offices, a number of merger processes will come into effect
simultaneously, including the data merger of the five entities.
"Data merger will also start from April 24 and we will finish it by May end. That is the plan of action," he
said, adding that the bank had given itself six months to complete all merger-related processes.
All the products of associate banks will cease to be offered and will be replaced by the SBI product basket.

46
Impact of SBI mergeron customers
If you are a customer of any one of the five associate banks of State Bank of India (SBI), brace up for
merger impact from April 1.
The impact, though not expected to cause any major disruption of banking services, will not be entirely
seamless.
According to government orders issued on February 22 under the State Bank of India Act, 1955, the entire
undertaking of State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore, State
Bank of Patiala, and State Bank of Hyderabad will stand transferred to and vested in State Bank of India
from April 1.
The biggest change will be in online transactions. Going by the SMS alerts being sent to customers of
associate banks by the SBI merger team, the online portal of the five associate banks will cease to function
from the date of merger.
They will have to login with the same user name and password to OnlineSBI for accessing their online
accounts.
The NEFT/RTGS charges, however, will vary. While some associate banks charge less, all will have to pay
charges applicable to SBI.
“For the time being, IFSC codes of associate banks will be the same but are likely to change from July
2017 onwards,” bank said.
At the product level, there will be continuity. For example, State Bank of Hyderabad offers more interest
on certain deposits. This will continue till the expiry of the contract/deposit period.
According to a senior SBI official, processing of new loans from associate banks has already been stopped.
“This will surely cause some inconvenience to customers but we will speed up processing after April 15 to
make it up,” he added.
The changeover will be a little tough for corporates as they will have to follow some new norms.
If they are using any of the associate bank’s facilities for tax payment or remittances online, they will have
to select options under ‘erstwhile’ associate bank of their own to get redirected to the payment page.

47
Impact of SBI mergeron Indian Banking sector
Global rating agency Moody's, in its report last month, said the merger will have limited impact on SBI's
credit metrics, given that SBI already fully owns SBH and SBP and has majority stakes in the other three
associate banks. In addition, BMB only started operations in 2013 and accounts for less than 0.1 per cent of
SBI's total assets.
 1)This is the first ever large-scale consolidation in the Indian banking industry.
 The merger will create a banking behemoth with an asset book of Rs 37 lakh crore.
 SBI will give 28 of its shares for every 10 shares held of State Bank of BikanerBSE 0.77 % and
Jaipur.
 It will give 22 of its shares for every 10 shares held of State Bank of Mysore.
 The lender will give 22 of its own shares for every 10 shares held of State Bank of Travancore.
 SBI will give 4,42,31,510 shares with face value of Re. 1 for every 100 crore equity shares of
Bhartiya Mahila Bank.
 The merger will see SBI's ranking approve in the Bloomberg's largest bank by asset ranking. It may
well break through the 50-mark in the ranking.
 SBI's asset base will now be five times larger than the second-largest Indian bank, ICICI Bank

48
Impact of SBI mergeron Indian Economy
The past few years have been riddled with NPAs (non-performing assets), loans whose interest amounts have
not been paid back. They are classified as faulty instruments due to the high probabilities of default and end
up plaguing the balance sheets of banks. This renders banks unable to perform their essential functions.
Liquidity provisions become hampered, and banks aren’t able to stay off a macroeconomic shock.
They are not able to lend to consumers as much, thus lowering aggregate spending and consumption, causing
an economic slowdown. Projects, construction and other major activities get stalled due to insufficient flow
of funds.
The merger will bring nearly a quarter of all outstanding loans in India’s banking sector to SBIs books so
that they can be dealt with in an efficient, collective manner. Two of the five associate banks, i.e. the State
Bank of Patiala and the State Bank of Hyderabad are unlisted. When it comes to the other three banks, SBI
holds a 75% stake in State Bank of Bikaner & Jaipur, 90% in State Bank of Mysore and a 79% in State Bank
of Travancore. Thus, the synergy seems to be an inevitable move.
 The merger benefits include getting economies of scale and reduction in the cost of doing
business.
 Technical inefficiency is one of the main factors responsible for banking crisis. The scale of
inefficiency is more in case of small banks. Hence, merger would be good.
 The size of each business entity after merger is expected to add strength to the Indian Banking
System in general and Public-Sector Banks in particular.
 After merger, Indian Banks can manage their liquidity – short term as well as long term –
position comfortably. Thus, they will not be compelled to resort to overnight borrowings in call
money market and from RBI under Liquidity Adjustment Facility (LAF) and Marginal Standing
Facility (MSF).
 Synergy of operations and scale of economy in the new entity will result in savings and higher
profits.
 A great number of posts of CMD, ED, GM and Zonal Managers will be abolished, resulting in
savings of crores of Rupee.
 Customers will have access to fewer banks offering them wider range of products at a lower cost.
 Mergers can diversify risk management.

49
RESEARCH METHODOLOGY
Data for the purpose of research has been collected form secondary sources. The data has then been
analysed in order to find out reasons of merger and its effects on Indian banking system.
 This paper is based on the secondary data. The secondary data was collected from various published
sources like reports, magazines, newspapers and Websites.
 We have used various websites to collect the data and used simple statistical tools to analyse and
come into conclusions.

 We have Bar charts to determine and form the data in a graphical format.

 The graphs have been very helpful in our findings and observations, they have helped us to reach
the conclusions without any ambiguity.


50
DATA INTERPRETATION AND
DATA ANALYSIS
After the SBI and its associates merger
The comparison of 1St Quarter of 2016 with 1St Quarter of 2017 are follows.
 Interest Income on Advances increased from Rs. 28,582 Crores in Q1FY16 to Rs. 29,884Crores in
Q1FY17 (4.56% growth).
 Interest Income on Resources Operations increased from Rs. 10,254 Crores in Q1FY16 to Rs.
10,887 Crores in Q1FY17 (6.18% growth).
27500
28000
28500
29000
29500
30000
Interest Income on Advances
Interest Income on Advances (in
Crores)
2016 2017 4.56% Growth
9800
10000
10200
10400
10600
10800
11000
Interest Income on Resources Operations
Interest Income on Resources
Operations (in Crores)
2016 2017 6.18% Growth

51
 Total Interest Income increased from Rs. 39,643 Crores in Q1FY16 to Rs. 41,594 Crores in
 Interest Expenses on Deposits increased from Rs. 24,097 Crores in Q1FY16 to Rs. 25,169 Crores in
38500
39000
39500
40000
40500
41000
41500
42000
Total Interest Income
TotalInterest Income (in Crores)
2016 2017 4.92% Growth
23400
23600
23800
24000
24200
24400
24600
24800
25000
25200
25400
Interest Expenses on Deposits
Interest Expenses onDeposits (in Crores)
2016 2017 4.45% Growth

52
 Total Interest Expenses increased from Rs. 25,911 Crores in Q1FY16 to Rs. 27,281 Crores in
 Net Interest Income increased from Rs. 13,732 Crores in Q1FY16 to Rs. 14,312 Crores in Q1FY17
(4.23% growth).
25000
25500
26000
26500
27000
27500
Interest Expenses
Interest Expenses (in Crores)
2016 2017 5.29% Growth
13400
13600
13800
14000
14200
14400
Net Interest Income
Net InterestIncome (in Crores)
2016 2017 4.23% Growth

53
 Non-Interest Income increased from Rs. 5,088 Crores in Q1FY16 to Rs. 7,335 Crores in Q1FY17,
an increase of 44.16% YoY, driven by increase in Profit on Sale of Investments by 212.15%,
increase of 22.30% in Recovery in Written Off accounts, increase of 21.93% in Forex Income and
6.08% in Fee Income.
 Operating Income increased by 15.02% from Rs. 18,820 Crores in Q1FY16 to Rs. 21,647 Crores in
Q1FY17.
0
1000
2000
3000
4000
5000
6000
7000
8000
Non-Interest Income
Non-InterestIncome (in Crores)
2016 2017 44.16% Growth
17000
18000
19000
20000
21000
22000
Operating Income
Operating Income (in Crores)
2016 2017 15.2% Growth

54
 Staff Expenses increase was contained at 5.93%, from Rs. 5,906 Crores in Q1FY16 to Rs. 6,257
Crores in Q1FY17.
 Operating Expenses increased by 10.14% from Rs. 9,618 Crores in Q1FY16 to Rs. 10,594 Crores
in Q1FY17.
5700
5800
5900
6000
6100
6200
6300
Staff Expenses
Staff Expenses (in Crores)
2016 2017 5.93% Growth
9000
9200
9400
9600
9800
10000
10200
10400
10600
10800
Operating Expenses
Operating Expenses (in Crores)
2016 2017 10.14% Growth

55
 Operating Profit increased by 20.12% from Rs. 9,202 Crores in Q1FY16 to Rs. 11,054 Crores in
Q1FY17.
 Net Profit in Q1FY17 was Rs. 2,521 Crores, lower than the Net Profit of Rs. 3,692 Crores in
Q1FY16 by Rs. 1,171 Crores (-31.73%) as loan loss provisions increased by Rs. 2,981 Crores from
Rs 3,359 Crores as on 30th June 2015 to Rs. 6,340 Crores as on 30th June 2016.
0
2000
4000
6000
8000
10000
12000
Operating Profit
Operating Profit (in Crores)
2016 2017 20.12% Growth
0
500
1000
1500
2000
2500
3000
3500
4000
Net Profit
Operating Profit (in Crores)
2016 2017 31.73% Down

56
ASSET QUALITY
 Gross NPAs went up by 44 bps at 6.94% in Q1 FY17 as against 6.50% in Q4 FY16 and by 265 bps
from Q1 FY16.
 Net NPAs went up by 24 bps at 4.05% in Q1 FY17 as against 3.81% in Q4 FY16 and by 181 bps
from Q1 FY16.
BALANCE SHEET OF THE YEAR 2016-2017

58
FINANCIAL AND PERFORMANCE
ASSETS AND LIABILITIES
The total assets of your Bank have increased by 14.78% from `23,57,617.54 crore at the end of March
2016, to `27,05,966.30 crore as at the end of March 2017. During the period, the loan portfolio increased by
7.34% from ` 14,63,700.42 crore, to `15,71,078.38 crore. Investments increased by 33.06% from
`5,75,651.78 crore to `7,65,989.63 crore as at the end of March 2017. A major portion of the investment
was in the domestic market in government securities.
Your Bank’s aggregate liabilities (excluding capital and reserves) rose by 13.75% from `22,13,343.10 crore
as on 31st March 2016 to `25,17,680.24 crore as on 31st March 2017. The increase in liabilities was mainly
contributed by increase in deposits. The deposits rose by 18.14% and stood at ` 20,44,751.39 crore as on
31st March 2017 against `17,30,722.44 crore as on 31st March 2016. The borrowings declined marginally
by 1.75% from `323,344.59 crore at the end of March 2016, to `317,693.66 crore as at the end of March
2017.
NET INTEREST INCOME
Net interest income increased by 8.16% from 57,194.81 crores in FY2016 to 61,859.74 crores in FY2017.
Total interest income has increased from `163,998.30 crore in FY2016 to `1,75,518.24 crore in FY2017
registering a growth of 7.02%, due to increase in Income from resources deployed in domestic treasury
operations by 17.04%.
Total interest expenses have increased from `106,803.49 crore in FY2016, to `1,13,658.50 crore in
FY2017. Interest expenses on deposits during FY2017 recorded an increase of 6.81%, compared to the
previous year.

59
NON-INTERESTINCOME AND EXPENSES
Non-interest income increased by 27.35% to `35,460.93 crore in FY2017, as against `27,845.37 crore in
FY2016. During the year, your Bank received an income of ` 688.35 crore (`475.83 crore in the previous
year) by way of dividends from Associate Banks/ subsidiaries and joint ventures in India and abroad, and
`10,749.62 crore (`5,168.80 crore in the previous year) by way of profit on sale of investments under all
categories viz HFT, AFS and HTM, a whopping jump of 107.97%. Cost to Income ratio improved by 138
basis points from 49.13% in FY2016 to 47.75% in FY2017 mainly because of control in staff expenses and
higher growth in other income.
OPERATING PROFIT
Your Bank registered a robust growth of 17.55% in Operating Profit in the current financial year. The
Operating Profit of your Bank for FY2017 was at `50,847.90 crore as compared to `43,257.81 crore in
FY2016. Your Bank posted a Net Profit of ` 10,484.10 crore for FY2017, as compared to ` 9,950.65 crore
in FY2016, i.e. an increase of 5.36% even after higher provisioning requirements on NPAs.
PROVISIONS & CONTINGENCIES
Major provisions made in FY2017 were as under: `32,246.69 crore for non-performing assets (as against
`26,984.14 crore in FY2016), `2,499.64 crore towards Standard Assets (as against `2,157.55 crore in
FY2016), `4,371.06 crore towards Provision for Tax (as against `3,823.41 crore in FY2016). An amount of
`298.39 crore was provided for depreciation on Investments (as against `149.56 crore in FY2016).
RESERVE & SURPLUS An amount of `3,145.23 crore (as against `2,985.20 crore in FY2016) has been
transferred to Statutory Reserves. An amount of `1,493.39 crore (as against `345.27 crore in FY2016) has
been transferred to Capital Reserves. An amount of `3,740.14 crore (as against `4,267.35 crore in FY2016)
has been transferred to Revenue and other Reserves which includes a transfer of `309.59 crore from
revaluation reserve to General Reserve.

60
REVALUATION OF FIXED
ASSETS Your bank has revalued immovable properties based on the reports obtained from the external
independent values. The revaluation surplus was credited to revaluation reserve as on June 30, 2016 and the
closing balance of revaluation reserve as at March 31, 2017, (net of amount transferred to General
Reserve), is ` 31,585.65 Crore. In terms of RBI circular No.DBR No.BP. BC.83/21.06.201/2015-16 dated
01.03.2016 on Basel III capital regulations, the revaluation reserves have been reckoned as CET I Capital
at a discount of 55%.
PROGRESS ON IMPLEMENTATIONOF
IND AS “The Ministry of Corporate Affairs (MCA), Government of India has notified the Indian
Accounting Standards (Ind AS) which are converged version of International Financial Reporting
Standards (IFRS). Subsequently, RBI has issued a road map for implementation of Ind AS for Banks in
India for accounting periods beginning from April 1, 2018, with comparatives for the periods ending March
31, 2018.
To monitor the progress and provide necessary guidance in implementation of Ind AS, your Bank has
formed a Steering Committee headed by Managing Director (Compliance & Risk). Towards
implementation of Ind AS, following measures have been initiated by your bank:
 Diagnostic analysis.
 Developing a model for computation of Expected Credit Loss (ECL).
 Policy changes.
 IT system changes including preparation of financials.
 Training to credit officials.

62
OBSERVATIONS AND FINDINGS
We will hypothetically merge SBI and its six subsidiaries to form a new bank called merged SBI (MSB)
having the sum of actual inputs and outputs of these seven banks as its inputs and outputs. We, therefore,
measure efficiencies of selected banks separately under two situations: before merger (31 banks) and after
merger (25 banks) by adding this new bank in place of seven banks of SBI group to the data set. Present
study is mainly concentrated on the efficiency evaluation of hypothetically merged SBI. DEA scores are
derived by using DEA software ‘DEA-Solver Learning Version 3’ designed by Cooper et al. (2007).
Present study has selected three inputs (m = 3) and three outputs (s = 3) with a sample size of 31/25 (n =
25/31). Therefore, the sample size in this study exceeds the desirable size as per the rule of thumb
(31/25>18) i.e., n (number of DMUs) equal to or greater than [max {m × s, 3 x (m + s)}] (Cooper et al.,
2007). Thus, selected number of input and output variables allows accepted number of degree of freedom
i.e., efficiency discriminatory powers. It is also found that there is a high correlation between selected input
and output variables. So, with this appropriate number of inputs and outputs, sample banks selected taking
into account of more homogeneity condition and reasonable validation by high degree of correlation
between input and output variables, the present study can demand more robust and reliable results.

63
INORGANIC GROWTH
It means that the company has grown by merger. They are also known as external growth. The above
analysis shows that inorganic growth helps a company to grow exponentially, it is a fast way of synergy.
ORGANIC GROWTH
It is the rate of a business expansion through a company’s own business
activity. They are also known as internal growth. The above analysis for organic growth shows that a
company grows at a gradual and normal pace. It grows as the company’s books improves.

64
CONCLUSION
In view that profitability of SBI was going down, and it needed reconstruction, this step of merger seems to
be a smart step. It has brought SBI in list of top 50 banks in the world which is a big deal. However,
profitability of the bank after merger has fallen by approximately Rs. 3000 crores. This was mainly because
of accumulated losses of associate banks which were shown in balance sheet of the amalgamated entity and
it reduced the enthusiasm of investors. Still, investors should not lose hopes as such bold steps have effects
in long run and they take time to become visible.
combined entity will have large "capital base", perhaps it is true, question is how large it is. we are living in
a world where small players with limited capital base is bringing disruption in many sectors esp. payment
banks, online payment solutions etc.
Expansion into new market (via new branches) may not be the best options: merger would need many
problems to be tackled - esp when both the entities (SBI, SBT) have presence is same town. Manpower,
streamlining, pension, benefits, transfer, promotions etc from organisations would differ.
Govt could argue, combined entity would have economies of scale, this aspect needs revision - as business
process, for underlying assets would vary, also economies of scale itself cannot help save "Banks", which
are plagued with NPA.
However, this would be great experience for consulting firms, core banking solution providers, they are
certainly going to make the best of this exercise.
Merger, in any Indian govt entity is yet to bear the fruits, perhaps merger of Air India and Indian airlines,
should be a good harbinger.

65
RECOMMENDATIONS AND
SUGGESTIONS
The objective of this paper is to measure and analyse the technical efficiency status of the proposed merger
plan of SBI and its subsidiaries. For this, the study has adopted two DEA models - CCR and BCC to
estimate efficiency of selected banks under two situations before and after hypothetical merger of seven
SBI group banks for the financial year 2009-10. The results (before merger) reveal that only 9 banks out of
31 under evaluation are found to be 100% technical and scale efficient.
The results (after merger), reveal that merged SBI (MSB) has a CCR efficiency, 0.947, which is less than
one (i.e., an inefficient bank). In order to be fully CCR efficient MSB has to reduce its present number of
employees by 36.67%, fixed assets and loanable fund by 5.3% to produce present level of outputs. MSB is
found to be fully BCC efficient. Thus, overall technical inefficiency of MSB is mainly due to scale
inefficiency i.e., inefficiency is mainly caused by the disadvantageous conditions under which the MSB
would have to operate. Scale inefficiency arises due to operating at the region where decreasing returns-to-
scale prevails. Efficiency improvement plan results in a really drastic reduction of input ‘no. of employees’
by about 98000 and enhancing output ‘net profit’ by about Rs 25590 lakhs in order to bring in merged SBI
onto the efficient frontier.
They may consider the following recommendations to gain more customer based and achieve more
customer satisfaction along with maintaining existing customers’ delights.
 The study first recommends that merging and restructuring of SBI group may not be enough.
Reduction in input resources is also necessary to arrive at more efficiency status. Otherwise merger
will result in a worsened efficiency position.
 The management of SBI should conduct more product and services awareness campaign.
 They should increase the level of providing personal attention to individual customers.
 In delivery of quality service in banks, what matter are speed, accuracy, promptness, reliability,
individualized attention, etc. Better results can be achieved through proper use of relevant banking
technology.
 The SBI Management should critically evaluate the deviation in means in order to create balance in
all dimensions of customer satisfaction measurement tools.

66
BIBLIOGRAPHY
References:
 Wikipedia, State Bank of India, https://en.wikipedia.org/wiki/State_Bank_of_India,
 Hemindra Hazari, Bad Loans and the Great SBI Merger, The Wire, https://thewire.in/141805/sbi-
associate-merger-loss-npas/
 State Bank of India (SBI), http://www.iloveindia.com/finance/bank/nationalised-banks/state- bank-
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standard.com/article/finance/sbi-merger-impact-47-of-associate-banks-offices-to-shut-down-
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SBI-associate banks merger? What could be its pros and cons?, https://www.quora.com/What-is-
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67
REPORTS:
Corporate Internet Banking FAQs : Report Level Merger - SBI
https://www.sbi.co.in/webfiles/uploads/.../mergerofassociatebanks/CINB%20FAQs.pdf
SBI merger with five associate banks from 1 April - Livemint
https://www.livemint.com › Industry › Financial Services
SBI merger with associate banks, Bharatiya Mahila Bank effective today
www.dnaindia.com/.../report-sbi-merger-with-associate-banks-bharatiya-mahila-bank
SBI merger: After SBI merger, now Punjab National Bank and Bank of ...
https://economictimes.indiatimes.com › Industry › Banking/Finance › Banking
SBI merger - Latest News on SBImerger | Read Breaking News on ...
zeenews.india.com/tags/sbi-merger.html
SBI merger: Hyderabad HC stays absorption of associate banks ...
www.business-standard.com/.../sbi-merger-hyderabad-hc-stays-absorption-of-associat

68
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down-117032100246_1.html
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