Which six banking entities were merged with State Bank of India on 1 April 2017, making them part of SBI?

Difficulty: Medium

Correct Answer: 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

Explanation:


Introduction / Context:
This question examines knowledge of banking consolidation in India. On 1 April 2017, State Bank of India, the country s largest public sector lender, merged several associate banks and another entity into itself. The aim was to create a stronger unified bank. The question asks which six banking entities were merged into SBI on that date.


Given Data / Assumptions:

  • The effective date of the merger is 1 April 2017.
  • The acquiring institution is State Bank of India.
  • Several associate State Banks and another government owned bank were involved.
  • The options list different combinations of public sector banks.


Concept / Approach:
Before the merger, SBI had multiple associate banks that carried the State Bank name and operated semi independently. These were State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore. In addition to these five associates, Bharatiya Mahila Bank, a women focused bank, was also merged with SBI. The correct option is therefore the combination that includes all five associates plus Bharatiya Mahila Bank and does not mix in unrelated public sector banks.


Step-by-Step Solution:
Step 1: List the five associate banks of SBI that were merged: State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore. Step 2: Remember that Bharatiya Mahila Bank, established to promote women centric banking, was also merged into SBI on the same date. Step 3: Check each option for the presence of exactly these six names without adding or omitting any. Step 4: Identify that option A contains all five State Bank associates and Bharatiya Mahila Bank, making it the only correct combination.


Verification / Alternative check:
Government notifications and RBI press releases on the merger explicitly list the banks that were amalgamated with SBI. They name the five associate State Banks plus Bharatiya Mahila Bank, and do not mention other nationalised banks such as Bank of Baroda, Andhra Bank or Vijaya Bank. Contemporaneous news coverage also repeatedly lists these same six entities as the ones that ceased to exist as separate banks after becoming part of SBI.


Why Other Options Are Wrong:
Option B: This combination wrongly includes Bank of Baroda and Dena Bank, which were not part of the SBI merger in 2017. Option C: Andhra Bank and Vijaya Bank were separate nationalised banks and were not merged with SBI at that time. Option D: Punjab National Bank, Canara Bank and Union Bank remained independent public sector banks and did not join SBI in this merger. Option E: This option ignores Bharatiya Mahila Bank, which was definitely included in the merger alongside the five associates.


Common Pitfalls:
A common error is to assume that only associate banks were involved and to forget Bharatiya Mahila Bank. Another mistake is confusing later consolidation events, such as mergers involving Bank of Baroda or other nationalised banks, with the 2017 SBI specific merger. To avoid such confusion, it helps to memorise the group as five State Bank associates plus one specialised bank, Bharatiya Mahila Bank.


Final Answer:
On 1 April 2017, SBI merged with 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.

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