Rajya Sabha, on Wednesday, passed the State Banks (Repeal and Amendment) Bill, 2017. The Bill provides for merger of six subsidiary banks with the State Bank of India (SBI).
The Bill seeks to repeal the State Bank of India (Subsidiary Banks) Act, 1959, the State Bank of Hyderabad Act, 1956 besides amending the State Bank of India (SBI) Act, 1955.
Under it, the five associates banks that were merged are State Bank of Hyderabad, State Bank of Bikaner and Jaipur, State Bank of Patiala, State Bank of Mysore, and State Bank of Travancore.
The merger of these banks have already been effective from 1st April, 2017.
The Bill aims at rationalisation of resources, reduction of costs and better profitability emerging from the merger of the subsidiary banks. The merger would also lead to better rate of interest for public at large, improved productivity and customer service.
During the discussion on the Bill in the Rajya Sabha, Minister of State for Finance, Shiv Pratap Shukla said that the merger is in national interest and would strengthen the banking sector.
Jairam Ramesh of Congress emphasised on the need for strong banking system in the country and their accountability should be improved.
The Bill has already been passed by the Lok Sabha.
With the passage of the Bill, SBI now has 24 thousand branches across the country, besides a strong ATM network of 59,000. Its customer base has also expanded to 37 crore.