State Bank of India (SBI)will gain $120 billion in assets after it is merged with associate banks and Bhartiya Mahila Bank, the lender said in a statement on Saturday.
It’s board approved share swap ratio on Thursday for the proposed takeover of five units that had been run at arms-length, as also Bharatiya Mahila Bank.
Policymakers want to consolidate country’s state-run banks so that they can extend fresh credit and help drive an investment-led recovery in India’s economy that is presently getting a boost from state and private consumption.
Public sector banks in India account for 70 percent of its banking sector assets. SBI said the merger would increase its assets by 36 percent to about $447 billion.