SBI, associate banks gain after Cabinet okays merger

NEW DELHI: Shares of State Bank of India (SBI) and its associates ended the day with as much as 5 per cent gains on Thursday after the Cabinet approved their merger, a step aimed at strengthening the sector through consolidation of public banks.

The scrip of State Bank of Mysore jumped 4.66 per cent, State Bank of Travancore gained 4.21 per cent, State Bank of Bikaner rose by 3.48 per cent and SBI was up 0.65 per cent on BSE.

During the day, these stock went up by up to 13.5 per cent. Seeking to create a global-sized bank, the Cabinet yesterday gave the go-ahead to the merger plan of SBI and its five associates. However, no decision was taken on the proposal to merge the Bharatiya Mahila Bank with SBI. The merger of associate banks is likely to result in recurring savings, estimated at more than Rs 1,000 crore in the first year, through a combination of enhanced operational efficiency and reduced cost of funds, an official statement said. The two unlisted associate banks which will be merged with SBI are State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH).—PTI


Related Stories

Digital payment can check black money, graft: PM

Free trade with India on agenda of UK Commonwealth summit

Kohli, Ashwin unmoved in latest ICC Test Rankings

Phase V UP polls today: Flag march in sensitive areas

NITI Aayog workshop to weigh in on mobility innovation

China intensifies crackdown to curb pollution

When Yash Chopra told Shah Rukh to turn a lover boy