SBI associate banks extend rally on proposed merger

Wednesday, May 18, 2016,12:25 IST By metrovaartha A A A

Mumbai | Shares of three associate banks of SBI extended their rally for the second straight session Wednesday on BSE, surging as much as 16 per cent, on the proposed merger of its five associate lenders with the parent firm.

The scrip of State Bank of Mysore zoomed 15.63 per cent to Rs 493.40 and that of State Bank of Travancore jumped 11.4 per cent to Rs 444.60. Shares of State Bank of Bikaner and Jaipur rose 4.52 per cent to Rs 532 on BSE. These banks had gained up to 13 per cent in the previous session also.

Top state-run lender SBI yesterday proposed merger of its five associate banks and newly created Bharatiya Mahila Bank (BMB) with itself, a move that will create a Rs 37-lakh crore banking behemoth with over 50 crore customers. After a hurriedly called board meetings of SBI as well as its associate banks, SBI said it has sought government approval for the merger. The five associate banks that will be merged are State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore. Among these, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed.