SBI-State Bank of Indore merger receives RBI approval

The merger of State Bank of India, the biggest lender of India with its subsidiary bank, State Bank of Indore has ultimately been authorized by RBI.

The apex bank is believed to have given its approval to the merger proposal.

SBI had previously said that it wanted to proceed with the merger during the 1^st quarter of this fiscal. But it had not officially received the approval.

The bank had received approval from its board and the Center for the merger. However  RBI’s approval was pending.

SBI has 98% stake in State Bank of Indore.

The ratio of share exchange for the bank has been fixed at 34:100.