Cabinet approves acquisition of subsidiary banks of State Bank of India

Question: When did Union Cabinet has approved the acquisition by the State Bank of India of its subsidiary banks?
(a) 10 February 2017
(b) 15 February 2017
(c) 13 February 2017
(d) 16 February 2017
Ans: (b)
Related facts:

• On 15 February 2017 the Union Cabinet has approved the acquisition by the State Bank of India of its subsidiary banks namely State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore.
• The Cabinet 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.
• The merger is likely to result in recurring savings, estimated at more than Rs. 1,000 crore in the first year, through a combination of enhanced operational efficiency and reduced cost of funds.
• The merger will also lead to better management of high value credit exposures through focused monitoring and control over cash flows instead of separate monitoring by six different banks.
• The acquisition under Section 35 of the State Bank of India Act, 1955 will result in the creation of a stronger merged entity.
• This will minimize vulnerability to any geographic concentration risks faced by subsidiary banks.
• It will create improved operational efficiency and economies of scale.
• It will also result in improved risk management and unified treasury operations.
• The acquisition of subsidiary banks of State Bank is an important step towards strengthening the banking sector through consolidation of public sector banks.
• It is in pursuance of the Indradhanush action plan of the Government and it is expected to strengthen the banking sector and improve its efficiency and profitability.

Reference:
http://pib.nic.in/newsite/erelease.aspx
http://www.business-standard.com/article/finance/cabinet-approves-merger-of-5-associate-banks-with-sbi-117021501073_1.html
http://ddinews.gov.in/Business/Business%20-%20Headlines/Pages/SBImerger.aspx