The merger of State Bank of Indore with State Bank of India will be effective from August 27. After this, all branches of State Bank of Indore will work as those of SBI.
A statement from RBI said, “All branches of State Bank of Indore will function as branches of State Bank of India from August 27, 2010. Customers, including depositors of State Bank of Indore, will be able to operate their accounts as customers of State Bank of India with effect from August 27”.
The statement added, “The order of acquisition will be effective on and from the close of business on August 26, 2010”.
SBI controls 98% share in State Bank of Indore. The merger had been approved by the board of SBI last year.
The merger would help both the banks by eliminating competition between the two and better access to funds at economical rates.
After the merger, SBI will have 5 subsidiary banks — State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
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