SBI will impose minimum balance and ATM charges from today

New service charges announced by State Bank of India (SBI) and penalties for non-maintainence of minimum balance in the country's largest public sector bank would be applicable for the customers of the newly-merged five associate banks, from April 24.

"We opened today as one bank, so that new products and new services would come across more seamlessly", State Bank of India Chairman Arundhati Bhattacharya said.

In a posting on its website, SBI said with the merger, it now has 2.77 lakh employees, 50 crore customers, and more than 25,000 branches and 58,000 ATMs.

"The SBI opened as "one bank" today (Monday) and will continue to operate in the same manner as before post-merger", Bhattacharya told the media.

"The combined entity will enhance productivity, mitigate geographical risks, increase operational efficiency and drive synergies across multiple dimensions while ensuring increased levels of customer delight", she said.

There may be concerns with regard to sticky loans of the merged entities, but then the sheer size of the bank and the centralized recovery system now in place, will help offset that.

As per the release, post- merger, the bank will rationalize its branch network by relocating some of the branches to maximize the reach. "Integration of treasuries of the associate banks with the treasury of SBI will bring in substantial cost saving and synergy in treasury operations", said SBI. It also merged with itself the operations of the Bharatiya Mahila Bank (BMB). Later in March, the Cabinet approved merger of BMB as well.

State Bank of India. Similarly, SBM and SBT shareholders will get 22 shares of SBI for every 10 shares. "We have to be nearer to the customers".

As far State Bank of Patiala and State Bank of Hyderabad, separate schemes of acquisition were in place, as the two entities, were wholly-owned by State Bank of India.

  • Carolyn Briggs