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Abstract
Merger and Acquisition encourage banks to gain global reach and better synergy and allow banks to acquire the stressed assets of weaker banks. This paper deals with THE MERGER OF STATE BANK OF INDIA & ITS ASSOCIATES. Merger of SBI with its five associate banks on 1st April, 2017. The five associate banks are the State Bank of Bikaner and Jaipur (SBBJ), the State Bank of Mysore (SBM), the State Bank of Travancore (SBT), the State Bank of Hyderabad (SBH) and the State Bank of Patiala (SBP). Initially, SBI had Seven Associate banks – two of them, the State Bank of Indore in 2010 and the State Bank of Saurashtra in 2008 were merged earlier. The merger will also mean that all SBI associate bank customers will become SBI customers and associate bank employees will become SBI employees. So, all associate bank employees will be eligible for the same retirement benefits as SBI employees. SBI employees get three retirement benefits (Provident fund, gratuity and pension), while associate bank staff members get two retirement benefits.