State Bank of Indore branches will become SBI branches from Aug 27

From August 27 onwards, all branches of State Bank of Indore will start functioning as those of State Bank of India (SBI).

The Reserve Bank of India said in a statement, "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."

A month-and-a-half earlier, the union cabinet approved the merger between State Bank of Indore with its parent SBI, with an aim to help the country’s largest lender to increase its operations and cut costs.

The apex bank added, "The order of acquisition will be effective on and from the close of business on August 26, 2010."

In July the government had issued the 'Acquisition of State Bank of Indore order 2010', according to which the process of amalgamation is to begin from August 26.

Last year, the central board of SBI had given approval for the merger, after this the Centre also gave an in-principle approval.

SBI holds 98% stake in State Bank of Indore, which is having 503 branches, including 437 crore banking branches and 66 branches for NRI services.

After this merger the competition between two entities will also come to end and will lead to easier access to funds at competitive rates.

After this merger SBI will have five associate banks - State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.

While the State Banks of Bikaner and Jaipur, Mysore and Travancore are listed companies.