Shares of all three listed – State Bank of Mysore, State Bank of Bikaner and Jaipur and State Bank of Travancore- associate banks of State Bank of India (SBI) have rallied up to 20% on back of huge volumes on the BSE.
State Bank of Mysore has locked in 20% upper circuit at Rs 714, with no sellers on the counter. A combined 169,857 shares have already changed hands so far and there are pending buy orders for 15,893 shares on both the exchanges at 1335 hours.
State Bank of Bikaner and Jaipur has surged 19% to Rs 490 and State Bank of Travancore by 18% to Rs 642 on back of over two-fold jump in trading volumes. SBI, on the other hand, is trading flat at Rs 2,311 on the BSE.
In an interview to The Hindu, Pratip Chaudhuri, Chairman of SBI, said that once the bank comfortable with capital, it will undertake the merger of the remaining banks.
The board of the country’s largest lender had already given approval for the merger.
Of the five associate banks of SBI, State Bank of Hyderabad and State Bank of Patiala are unlisted. SBI merged one of its associate, State Bank of Saurashtra, with itself in 2008. State Bank of Indore was merged with SBI in 2010.