SBI 2 LAST (BCM11)

Increased presence in all terrains and geographies Increased presence in all terrains and geographieswill increase bank’s deposit raising capacity and bring downthe cost of funds further. Thus, the benefit so derived willflow on to the customers in the form of improved services,borrowing costs etc, it added. The bank also expects the merger to fasten the rollout of digital initiatives, which is currently hamstrung byexistence of different entities with separate managementscausing a lag in implementation across the the SBI Group. It also expects reduction in overheads, administrativeoffices, and centralisation of treasury will lead to majorreduction in operating costs. Post mergers, the bank will re-deploy manpower incustomer facing roles with a sharper marketing focus. The sameis expected to create a superior customer experience. On the additional capital requirement (which thechairperson had earlier pegged at around Rs 3,000 crore)arising due to the mergers will be met through the resultantincrease in efficiencies and economies of scale. During the June quarter earnings, chairpersonArundhati Bhattacharya had said that the merger will lead toshuttering of the treasury desks of the merged entities buthad ruled out massive closure of retail branches, though shesaid there would be rationalisation of branches specially incities. The SBI had first merged State Bank of Saurashtra withitself in 2008. Two years later, State Bank of Indore wasmerged. SBI was founded on June 2, 1806, as Bank of Calcuttaand on 27 January 1921, it was renamed as the Imperial Bank ofIndia. On July 1, 1955, it was formally named as State Bank ofIndia after nationalisation. PTI BEN ARS ABKBAS