State Bank of Saurashtra merger bill passed by Union Cabinet

Finally the State Bank of Saurashtra merger bill has got the approval from Union Cabinet. The State Bank of Saurashtra will be merging with the State Bank of India to enable it to increase in terms of footprint, manpower and other resources.

According to sources the merger will enable the bank to become efficient for facing competition arising from globalization of the economy, along with better management of risk.

The Union Cabinet gave approval to the following proposals for the merger:

1. Issuing of order sanctioning the Scheme of Acquisition of State Bank of Saurashtra by the State Bank of India, in terms of section 35(2) of the State Bank of India Act, 1955

2. to introduce Bill (a) repealing the State Bank of Saurashtra Act, 1950 in the Parliament, (b) to make important amendments in the State Bank of India (Subsidiary Banks) Act, 1959 to remove references to State Bank of Saurashtra wherever it occurs in the State Bank of India (Subsidiary) Banks Act, 1959.

The bill passed by the Union Cabinet will be called namely State Bank of India (Subsidiary Banks) Amendment Bill, 2008.