Shares of State Bank of India (SBI) and associate banks such as State Bank of Bikaner, State Bank of Mysore and State Bank of Travancore rose during Thursday’s trade on the Bombay Stock Exchange (BSE). Shares gained between 3 and 13 per cent during intra-day trade after the cabinet approved to merge SBI’s five associates.
Shares of SBI rose 0.65 per cent on Thursday closing the session at Rs 270.40 on the BSE. Additionally, shares of State Bank of Bikaner and Jaipur (SBBJ) surged 3.48 per cent on closing the session at Rs 743, while shares of State Bank of Mysore soared 4.66 per cent and shares of State Bank of Travancore ended 4.21 per cent higher at Rs 583.5. “A formal notification in this regard is awaited from the government,” State bank of Travancore said.
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According to a plan approved by the board of SBI in August 2016, investors in State Bank of Bikaner and Jaipur holding 10 shares will get 28 shares of SBI. Investors in State Bank of Mysore and State Bank of Travancore holding 10 shares would get 22 SBI shares each.
State Bank of India (SBI) on Thursday said the merger of its five associates will happen in the next financial year and ruled out any wage-related issues delaying the process. Chairman Arundhati Bhattacharya said the government will now issue a notification which will contain the date at which the merger will become effective. “We think the merger would be some time in the next financial year because we are a listed company and doing such a large exercise just before the annual closing may not be a very good idea,” she told news channels.