At SBI, we believe that the long-term benefits of the merger will outweigh the near-term challenges.

Five Associate Banks and Bharatiya Mahila Bank have been merged with your Bank on 1st April 2017. The Associate Banks involved were State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Hyderabad and the State Bank of Patiala.

From a business perspective, this consolidation will provide significant long-term benefits to the Bank. Through this merger, we have significantly extended our reach, and network and will benefit from common treasury pooling. SBI now finds itself amongst the world’s largest banks, with a treasury pool of ₹ 9,01,642 crore, with 24,017 branches and 59,263 ATMs. The merger allows us to leverage operational synergies, enabling the Bank to reach out to new clients, improving our market share. The combined Bank caters to 42.04 crore customers, with a market share of 23.07% and 21.16% in Deposits and Advances, as opposed to 18.05% and 17.02% respectively before the merger. This merger places India’s next largest bank with a market share of 5.96% and 7.04% in deposits and advances respectively, putting the scale of SBI’s operations into perspective.

To meet the needs of a growing organisation, SBI has a strong operational infrastructure in place. Post merger, we have the ability to successfully process 15,000 transactions per second, versus actual utilisation of 4,600 transactions per second, making us future ready. An enhanced scale of operations and the rationalisation of common costs are expected to result in meaningful savings. Furthermore, the Bank’s productivity is expected to gradually improve from the effective re-deployment of skilled resources.

This merger has catapulted SBI, India’s largest lender, into one of the Top 50 global banks. The merged entity has deposits worth ₹ 25.85 lakh crore and ₹ 18.62 lakh crore worth of advances on its books. The benefits of this merger will have a ripple effect on the liability franchise as well as the asset portfolio. As the Bank takes advantage of the economies of scale, it will lead to a reduction in the cost of doing business and improved efficiencies.

At SBI, we believe that the longterm benefits of the merger will significantly outweigh the nearterm challenges. The resulting cost advantage; enhanced reach; and economies of scale from this merger, will help SBI sustain its mission of being an enduring value creator.