SBI seeks in-principle approval from govt to acquire 5 associate banks, Bharatiya Mahila Bank

Top state-run lender SBI on Tuesday proposed the merger of its five associate banks and newly created Bharatiya Mahila Bank (BMB) with itself and sought government's approval for the same, triggering consolidation in the public sector banking space.

SBI is seeking "in principle sanction" of the Central Government to enter into negotiation with the subsidiary banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore) and Bharatiya Mahila Bank Limited to acquire their businesses, including assets and liabilities, a statement said.

"While the decision is purely exploratory at this stage and there is no certainty in relation to our completing the acquisitions, the Bank, as a matter of good corporate governance to ensure complete transparency, are intimating this decision," it said.

No decision has been taken at this stage approving one or more of the aforesaid acquisitions and the same will be taken by the bank's board upon evaluating all the relevant considerations, it added.