SBI to Merge its Associate Banks

MUMBAI:
SBI is seeking “in principle sanction” of the Central Government to enter into negotiation with the subsidiary banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala a sbi nd State Bank of Travancore) and Bharatiya Mahila Bank Limited to acquire their businesses including assets and liabilities.
While the decision is purely exploratory at this stage and there is no certainty in relation to our completing the acquisitions, the Bank, as a matter of good corporate governance to ensure complete transparency, are intimating this decision, said SBI in a regulatory filing.
SBI further said that no decision has been taken at this stage approving one or more of the aforesaid acquisitions and the same will be taken by the Bank’s Board upon evaluating all the relevant considerations, including pursuant to discussions with relevant stakeholders, upon and subject to receipt of sanction from Central Government under section 35(1) of State Bank of India Act 1955.
Among the individual stocks, State Bank of Travancore rallied 5% to Rs 420, followed by State Bank of Mysore (4% at Rs 442) and State Bank of Bikaner & Jaipur (up 3% at Rs 526) on the BSE. All these banks ended higher in the range of 4%-13% on Wednesday.
However, SBI is down 1% at Rs 175 as compared to 0.71% fall in the benchmark S&P BSE Sensex.