State Bank of India’s public-listed subsidiaries State Bank of Mysore (SBM), State Bank of Bikaner and Jaipur (SBBJ) and State Bank of Travancore (SBT) hit their fresh 52-week high of Rs 723.70, Rs 749.25 and Rs 597.90, respectively, on Friday.
SBM, SBT and SBBJ soared 44 per cent, 36 per cent and 39 per cent to Rs 659.90, Rs 543.55 and Rs 693, respectively, in the past two trading sessions till June 16.
On Friday, SBM, SBBJ and SBT were trading up by 6.11 per cent, 1.45 per cent and 2.46 per cent at Rs 700.25, Rs 708 and Rs 563.30, respectively (at 10 am).
These three associate banks of the country’s largest lender are on rising spree since the Union Cabinet on Wednesday gave go-ahead to the merger of State Bank of India (SBI) and its associate lenders that would make the state-owned lender a global-sized bank. The decision boosted investors sentiments towards State Bank of Mysore (SBM), State Bank of Travancore (SBT) and State Bank of Bikaner and Jaipur (SBBJ).
Chandan Taparia, derivatives analyst, equity research, Anand Rathi Financial Services said, “Upside is not much in SBBJ after the recent run up but it can touch Rs 750 going forward. State Bank of Travancore and State Bank of Mysore can touch Rs 620 and Rs 750.”
However, shares of State Bank of India were trading almost flat at 215.80. On the further movement of SBI, Mustafa Nadeem, CEO, Epic Research said, “SBI will be the major beneficiary from the banking space of the recent actions and at current levels comes at lower band of its overall trading channel in last half decade. We believe it to take a rebound towards higher targets of Rs 270 – 300 in FY17. Any correction should be an opportunity for traders to take a long term position.”
“State Bank of India can touch Rs 233 going foward,” said Taparia.