SBI, associate banks gain after government approves merger

Earlier, initiating consolidation among public sector lenders, the government of India on Wednesday approved a proposal to merge the five subsidiaries of State Bank of India.

SBI, associate banks gain after government approves merger

A day after the Union Cabinet approved the merger of State Bank of India (SBI) and its five remaining subsidiaries, shares of SBI and its three listed subsidiaries surged up to 13 per cent on Thursday.

Among State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner and Jaipur, the shares of SBM and SBBJ went up to 13% to Rs 638 and 11% each at Rs 796 respectively, reports said. The shares of State Bank of Travancore surged 11%  at Rs 619.


Earlier, initiating consolidation among public sector lenders, the government of India on Wednesday approved a proposal to merge the five subsidiaries of State Bank of India.

“This merger will lead to far greater operational efficiency,” Union Finance Minister Arun Jaitley was quoted in media reports as saying.

“There will be synergy in operations within these banks, which will also cut down the cost of operations and thus cost of funds,” he added.

Besides the three listed subsidiaries, the move will see the merger of State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH) with State Bank of India.

State Bank of Indore was merged with SBI in 2010 and SBI had taken over State Bank of Saurashtra in 2008.

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