Arun Jaitley Introduces Bill in Lok Sabha to repeal law on SBI’s Subsidiary Banks

Arun Jaitley

After the acquisition of the subsidiary banks by SBI, the subsidiary banks have ceased to exist and, therefore, it is necessary to repeal the State Bank of India (Subsidiary Banks) Act, 1959 and the State Bank of Hyderabad Act, 1956,” said the statement of objects and reasons to the Bill, which has been named the State Banks (Repeal and Amendment) Bill 2017.

Finance Minister Arun Jaitley on Friday introduced a Bill in the Lok Sabha that will pave the way for the repeal of the State Bank of India (Subsidiary Banks) Act, 1959 and the State Bank of Hyderabad Act, 1956.

According to the Bill, the consolidation exercise aims to rationalise resources, reduce costs, enhance profitability, lower the cost of funds leading to better rate of interest for the public, and improve productivity and customer service.

The State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore were constituted under the State Bank of India (Subsidiary Banks) Act, 1959. SBH was originally constituted as Hyderabad State Bank and later renamed as State Bank of Hyderabad under the State Bank of Hyderabad Act, 1956.

SBI had a 90 per cent shareholding in State Bank of Mysore, 75.07 per cent in State Bank of Bikaner & Jaipur and 79.09 per cent in State Bank of Travancore.

The Centre had issued orders on the scheme of acquisition of State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad by SBI.

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