A STUDY ON FINANCIAL POSITION OF SBI AFTER MERGER OF ASSOCIATE BANKS

The plans for making SBI a single very large bank by merging the associate banks started in 2008, and in September the same year, SBS merged with SBI. The very next year, State Bank of Indore (SBN) also merged. In the same year, a subsidiary named Bharatiya Mahila Bank was formed. The negotiations for merging of the 6 associate banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Bharatiya Mahila Bank) by acquiring their businesses including assets and liabilities with SBI started in 2016. The merger was approved by the Union Cabinet on 15 June 2016. The main objective of the study is to analyse the financial position of SBI before merger and to compare the financial position of SBI with pre and post merger. The conclusion is that after the merger the net profit has been declined and the stability of the bank is been questionable. So the bank has to look after this factors to increase the profit and stability which leads to increase in share value in future period of time