#NewDelhi : Shares of the three public listed subsidiaries of State Bank of India (SBI) such as State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner and Jaipur (SBBJ) continued to remain investors favourite for the second straight day as they hit their fresh 52-week high in early trade on Thursday. On the other hand, all the public sector banks in the Nifty PSU Bank index were trading in red.The Cabinet on Wednesday gave go-ahead to the merger of State Bank of India (SBI) and its associate lenders that would make the state-owned lender a global-sized bank. The decision boosted investors sentiments towards State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner and Jaipur.
Also read: SBBJ, State Bank of Mysore, State Bank of Travancore shares hit upper circuit after merger approval
State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner and Jaipur hit their fresh 52-week high of Rs 659.90, 566.80 and Rs 708 in the early trade.
At 9.38 am, SBBJ was trading 17.81 per cent up at Rs 706.30 on NSE. State Bank of Travancore and State Bank of Mysore were trading 18.22 per cent and 19.99 per cent higher at Rs 567 and Rs 659.90, respectively.
SBI had last month mooted the proposal for merger of its five subsidiary banks with itself and acquisition of the newly set up Bharatiya Mahila Bank. SBI has five associate lenders — State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
SBI Chairperson Arundhati Bhattacharya after the approval said merger of SBI and its associate banks is a win-win for both the sides.
The Nifty PSU Bank index was trading 0.78 per cent down at 2612.95 (at 9.38 am). The country’s largest lender State Bank of India shares were down 0.69 per cent at Rs 214.55. According to Nirmal Bang Institutional Equities, For SBI, being the parent, there will be additional pension-related costs amounting to Rs 3,000 crore, but from a long-term perspective the merger will lead to synergy, increased balance sheet strength and also cost optimisation via rationalisation of branches.
Other PSU banks such as Oriental Bank, Union Bank, Bank of Baroda, Punjab National Bank, Canara Bank, Syndicate Bank were also trading down by 1.08 per cent, 1.61 per cent, 0.99 per cent, 0.83 per cent, 0.63 per cent and 0.96 per cent, respectively.
Also read: SBBJ, State Bank of Mysore, State Bank of Travancore shares hit upper circuit after merger approval
State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner and Jaipur hit their fresh 52-week high of Rs 659.90, 566.80 and Rs 708 in the early trade.
At 9.38 am, SBBJ was trading 17.81 per cent up at Rs 706.30 on NSE. State Bank of Travancore and State Bank of Mysore were trading 18.22 per cent and 19.99 per cent higher at Rs 567 and Rs 659.90, respectively.
SBI had last month mooted the proposal for merger of its five subsidiary banks with itself and acquisition of the newly set up Bharatiya Mahila Bank. SBI has five associate lenders — State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
SBI Chairperson Arundhati Bhattacharya after the approval said merger of SBI and its associate banks is a win-win for both the sides.
The Nifty PSU Bank index was trading 0.78 per cent down at 2612.95 (at 9.38 am). The country’s largest lender State Bank of India shares were down 0.69 per cent at Rs 214.55. According to Nirmal Bang Institutional Equities, For SBI, being the parent, there will be additional pension-related costs amounting to Rs 3,000 crore, but from a long-term perspective the merger will lead to synergy, increased balance sheet strength and also cost optimisation via rationalisation of branches.
Other PSU banks such as Oriental Bank, Union Bank, Bank of Baroda, Punjab National Bank, Canara Bank, Syndicate Bank were also trading down by 1.08 per cent, 1.61 per cent, 0.99 per cent, 0.83 per cent, 0.63 per cent and 0.96 per cent, respectively.
Bureau Report
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