“With this merger, the SBI, with all these five subsidiaries merging in it, will also become a very large bank, not merely from a domestic point of view but actually a global player in its very size,” the minister said after the Cabinet meeting.
It will, Jaitley added, “certainly lead to far greater efficiency. It will lead to synergy of operations within these banks… it will cut down the cost of operations. The cost of funds itself will come down”.
The Cabinet, chaired by Prime Minister Narendra Modi, also approved the introduction of a Bill in Parliament to repeal the State Bank of India (Subsidiary Banks) Act, 1959, and the State Bank of Hyderabad Act, 1956.
