Three associate banks of State Bank of India jumped by 8.1% to 14.62% at 14:06 IST on BSE on reports that SBI is planning to merge its three listed and two unlisted associate banks with itself.
Meanwhile, the BSE Sensex was down 18118 points, or 0.71%, to 25,402.51
India's largest commercial bank by branch network State Bank of India (SBI) rose 0.76% to Rs 2,685. The stock hit high of Rs 2,731.05 and low of Rs 2,662.25 so far during the day.
State Bank of Mysore advanced 14.62% to Rs 618.35 after hitting 52-week high of Rs 647.40 in intraday trade.
State Bank of Travancore surged 8.53% to Rs 654.05 after hitting 52-week high of Rs 662.90 in intraday trade.
State Bank of Bikaner and Jaipur jumped 8.1% to Rs 617.75 after hitting 52-week high of Rs 660 in intraday trade.
State Bank of Mysore had outperformed the market over the past one month till 10 June 2014, surging 33.16% compared with the Sensex's 11.26% rise. The scrip had also outperformed the market in past one quarter, jumping 37.56% as against Sensex's 16.64% rise.
State Bank of Bikaner and Jaipur had outperformed the market over the past one month till 10 June 2014, surging 56.97% compared with the Sensex's 11.26% rise. The scrip had also outperformed the market in past one quarter, jumping 95.3% as against Sensex's 16.64% rise.
State Bank of Travancore had outperformed the market over the past one month till 10 June 2014, surging 49% compared with the Sensex's 11.26% rise. The scrip had also outperformed the market in past one quarter, jumping 63.08% as against Sensex's 16.64% rise.
Shares of three listed associate banks of SBI rallied on reports that SBI is planning to merge its three listed and two unlisted associate banks with itself. A newspaper quoted SBI Chairman Arundhati Bhattacharya as saying that the timing is very conducive now to look merging the associate banks.
As at 31 March 2014, SBI owned 75.07% stake in State Bank of Bikaner and Jaipur, 78.91% in State Bank of Travancore and 90% in State Bank of Mysore. State Bank of Hyderabad and State Bank of Patiala are the other two unlisted associates of the SBI.
Meanwhile, with reference to the news item appearing in a leading financial daily titled "Banking Behemoth: SBI to Merge 5 Arms with itself", SBI during market hours today, 11 June 2014 clarified that no such proposal has been formally taken up for approval. While the Bank has always had plans to consider merger of the associate banks, eventually, a position which has been stated by the bank from time to time since long, the matter had not been under active consideration for quite some time, SBI said. Going forward, the bank may examine the merger options afresh, when considered appropriate, but preparation of a possible roadmap would take a few months, SBI added.
Meanwhile, in an another clarification, State Bank of Bikaner and Jaipur during market hours today, 11 June 2014 clarified that no such negotiations are taking place at the moment and there is no such information that has not been announced to the Exchanges, which could explain the aforesaid movement in the trading.
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