SBI associate banks in focus: State Bank of Mysore, State Bank of Travancore hit 52-week highs

State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner & Jaipur surged between 13%-16% on the BSE

All three listed associates banks of State Bank of India (SBI) – State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner & Jaipur – were trading higher by more than 5% each on the BSE in early morning trade.

The country’s largest lender, SBI said on May 17 that it was seeking the Centre’s nod to merge its five associate banks and the newly-created Bharatiya Mahila Bank with itself.

“SBI is seeking "in principle sanction" of the Central Government to enter into negotiation with the subsidiary banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore) and Bharatiya Mahila Bank Limited to acquire their businesses including assets and liabilities,” SBI said in a BSE filing.

According to CNBC reports, the Cabinet may approve the SBI’s proposal to merge its five associate banks and Bharatiya Mahila Bank with itself.

Among the individual stocks, State Bank of Mysore (up 16% at Rs 528) and State Bank of Travancore (15% at Rs 458) have hit their respective 52-week highs on the BSE. State Bank of Bikaner & Jaipur has rallied 13% to Rs 566, while SBI was up 2% at Rs 211 on the BSE at 10:06 AM.