Shares of the three associate banks of State Bank of India (SBI) – State Bank of Mysore, State bank of Bikaner & Jaipur and State Bank of Travancore – jumped 16-20 per cent for the second consecutive session on Tuesday on the news of rights issue and speculation of a possible merger with the parent.
State Bank of Mysore rose 20 per cent, or Rs 221.15, to Rs 1,327 on the Bombay Stock Exchange (BSE). The public sector lender’s board will meet on Wednesday to decide the record date, ratio and pricing of its proposed rights issue.
State bank of Bikaner & Jaipur rose 20 per cent to Rs 822.80, while State Bank of Travancore jumped 16.7 per cent to Rs 1,053. The State Bank of Mysore and State bank of Bikaner & Jaipur scrips were the top two gainers on BSE on Tuesday, while that of State Bank of Travancore was the eighth highest gainer.