Shares of associate banks of State Bank of India (SBI) such as State Bank of Bikaner and Jaipur, State Bank of Travancore and State Bank of Mysore have rallied up to 5% on hopes of merger with SBI.
“SBI is contemplating merging one of its five associate lenders with itself this year as the parent bank's capital base expands,” the PTI report suggests quoting SBI chairman Pratip Chaudhuri.
Meanwhile, the country's largest lender will also seek a go-ahead for raising capital from an institutional placement of shares, a move which will help expand the capital base necessary for a merger, says report.
After taking charge in April 2011, Chaudhuri had put merger of associate banks on hold on the grounds that such mergers consume enormous amount of capital.
Among the individual stocks, State Bank of Mysore has rallied 5% to Rs 595, followed by State Bank of Bikaner and Jaipur (4.2% at Rs 442) and State Bank of Travancore (4% at Rs 563). SBI too, trading higher by 2.5% at Rs 2,237 on the Bombay Stock Exchange (BSE).
“SBI is contemplating merging one of its five associate lenders with itself this year as the parent bank's capital base expands,” the PTI report suggests quoting SBI chairman Pratip Chaudhuri.
Meanwhile, the country's largest lender will also seek a go-ahead for raising capital from an institutional placement of shares, a move which will help expand the capital base necessary for a merger, says report.
After taking charge in April 2011, Chaudhuri had put merger of associate banks on hold on the grounds that such mergers consume enormous amount of capital.
Among the individual stocks, State Bank of Mysore has rallied 5% to Rs 595, followed by State Bank of Bikaner and Jaipur (4.2% at Rs 442) and State Bank of Travancore (4% at Rs 563). SBI too, trading higher by 2.5% at Rs 2,237 on the Bombay Stock Exchange (BSE).
