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SBI, associate banks gain after Cabinet okays merger

No decision was taken on the proposal to merge the Bharatiya Mahila Bank with SBI

Press Trust of India  |  New Delhi 

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of and its associates ended the day with as much as five per cent gains today after the Cabinet approved their merger, a step aimed at strengthening the sector through consolidation of public banks.

The scrip of of Mysore jumped 4.66 per cent, of Travancore gained 4.21 per cent, State of Bikaner rose by 3.48 per cent and was up 0.65 per cent on


During the day, these stock went up by up to 13.5 per cent.

Seeking to create a global-sized bank, the Cabinet on Wednesday gave the go-ahead to the plan of and its five associates.

However, no decision was taken on the proposal to merge the Bharatiya Mahila with

The of associate banks is likely to result in recurring savings, estimated at more than Rs 1,000 crore in the first year, through a combination of enhanced operational efficiency and reduced cost of funds, an official statement said.

The two unlisted associate banks which will be merged with are State of Patiala (SBP) and State of Hyderabad (SBH).

First Published: Thu, February 16 2017. 17:17 IST
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