RBI gives nod for SBI & State Bank of Indore merger

SBI & State Bank of Indore merger gets approval of RBI

Finally the merger of State Bank of India and its associate, State Bank of Indore has got clearance from the Reserve Bank of India. According to sources the central bank has given its approval for the merger.

But SBI has not yet given any official confirmation about this.

Last year, the merger of SBI and State Bank of Indore was approved by the central board of the bank and later, the Centre also gave in-principle approval to the proposal. At present SBI have 98 per cent stake in State Bank of Indore.
Thus for the merger SBI has announced a share swap ratio of 34:100 for the merger. It has agreed to give 34 shares of SBI for every 100 shares of State Bank of Indore held by minority shareholders. For this purpose, SBI will be issuing up to over 1.