Govt gives nod to merger of SBS with SBI

The government on Thursday approved the merger of State Bank of [Get Quote] Saurashtra with its parent State Bank of India [Get Quote] to create a bigger banking entity in terms of size to take on competition ushered in by globalisation. For effecting the amalgamation, the government would first repeal the State Bank of Saurashtra Act, 1950 and thereafter amend the SBI Subsidiary Act, 1959 to remove references to the SBS Act wherever it occurs. The new Bill, to be introduced in Parliament soon, would be called the SBI Subsidiary Bank Amendment Bill, 2008. "The merger of State Bank of Saurashtra with State Bank of India will enable it to scale up in terms of footprint, manpower and resources... face competition arising from globalisation. . .augmenting efficiency and enabling better management of risks," Union Minister for... [read full story]