Shares of three associate banks of SBI today surged up to 13 per cent on reports that the lenders have proposed merger with the parent bank.
The scrip of State Bank of Mysore soared 12.76 per cent to Rs 426.70, and that of State Bank of Travancore rallied 9.87 per cent to Rs 399.10 on BSE.
State Bank of Bikaner and Jaipur too rose by 4.22 per cent to Rs 508.95.
Shares of State Bank of India however, ended the day on a flat note, down 0.08 per cent at Rs 177.05.
After over five years of hiatus, associate banks of SBI, including State Bank of Bikaner and Jaipur, have proposed to merge with the parent lender.
The respective boards have proposed merger with State Bank of India (SBI), the parent, in a meeting held today.
Top lender SBI in a statement released after the close of market said that it has sought government's approval for the merger of five associate banks and Bharatiya Mahila Bank with itself.
SBI has five associate banks -- State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
Among these, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed.
