Mumbai: SBI Capital Markets has invited proposals for independent valuation and determining the swap ratio for the merger of three State Bank of India associates and Bharatiya Mahila Bank with SBI.
The proposals have been sought from chartered accountant firms, SBI Caps said in a public notice. The three SBI associates in question are State Bank of Travancore, State Bank of Mysore and State Bank of Bikaner & Jaipur.
The bank’s two other associates – State Bank of Hyderabad and State Bank of Patiala – which will also be merged subsequently, will be valued separately as they are not publicly traded entities.
SBI Caps said the valuer must adopt all market prevalent practices for arriving at the valuation and must submit a joint report along with the valuer of each target bank, indicating the swap ratio for each of them. The valuer would be required to issue four separate swap ratios, one each in respect of each target bank.
SBI has also set a team of 15-20 members which is working on the framework of the merger. The team is headed by a general manager and a few deputy general managers.
SBI chairman Arundhati Bhattacharya had recently said all the five associate banks will be merged as soon as possible. “We are going to merge all of them not on the same day but as quickly as possible,” she had said when asked which of the five associate banks will be merged first.
