Shares of the three public listed subsidiaries of State Bank of India (SBI) such as State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner and Jaipur (SBBJ) continued to remain investors favourite for the second straight day as they hit their fresh 52-week high on Thursday as well as they soared upto 44 per cent in the past two trading sessions.
The 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).
Shares of 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.
State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner and Jaipur hit their fresh 52-week high of Rs 659.90, 571.90 and Rs 714.90 in Thursday’s trade.
On the other hand, shares of State Bank of India plunged 0.46 per cent down at Rs 215.05. Hatim Broachwala, research analyst at Nirmal Bang Institutional Equities has ‘Buy’ on SBI shares.
SBI had last month mooted the proposal for merger of its five subsidiary banks with itself and acquisition of the newly set up Bharatiya Mahila Bank. SBI has five associate lenders — State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
SBI Chairperson Arundhati Bhattacharya after the approval said merger of SBI and its associate banks is a win-win for both the sides.
The Nifty PSU Bank index settled 0.55 per cent up at 2,648.10 on Thursday.