State Bank of India rose 2.74% to Rs 255 at 9:30 IST on BSE after the bank announced the merger of its five associate banks and Bharatiya Mahila Bank with itself.
The announcement was made after trading hours yesterday, 18 August 2016.Meanwhile, the BSE Sensex was up 47.34 points, or 0.17% to 28,170.78.
On BSE, so far 4.24 lakh shares were traded in the counter, compared with average daily volume of 29.36 lakh shares in the past one quarter. The stock hit a high of Rs 257.20 and a low of Rs 254 so far during the day.
State Bank of India (SBI) announced the merger of 5 associate banks viz. State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Hyderabad and State Bank of Patiala with itself. SBI also announced the merger of unlisted Bharatiya Mahila Bank (BMBL) with itself. As per the swap ratio for the merger, 28 equity shares of SBI will be issued for every 10 shares held in SBBJ. For both SBM and SBT, the swap ratio for merger is 22 shares of SBI for every 10 shares held in SBM and SBT. SBBJ, SBM, and SBT are listed associate banks of SBI while State Bank of Hyderabad and State Bank of Patiala are the unlisted associate banks of SBI. SBI had announced in May 2016 that it was considering the merger of 5 associate banks and BMBL with itself.
The board of directors of listed associate banks of SBI namely, SBBJ, SBM and SBT separately approved the scheme of merger with SBI after market hours yesterday, 18 August 2016. Shares of SBBJ rose 2.21% to Rs 689. Shares of SBM slumped 10.25% to Rs 558. Shares of SBT jumped 6.55% to Rs 539.
SBI is India's biggest state run bank in terms of branch network. The Government of India currently holds 60.18% stake in SBI (as per the shareholding pattern as on 30 June 2016).
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