Shares of State Bank of India's associate banks surged on Wednesday amid rising speculation that the Cabinet may soon approve the proposal to merge five associate banks and the newly-created Bharatiya Mahila Bank with SBI.
As part of the government's commitment for the consolidation of banks, the Finance Minister Arun Jaitley in his budget speech in February had proposed to merge five associate banks and Bharatiya Mahila Bank with SBI to ensure good corporate governance and complete transparency.
Out of five associate banks, shares of State Bank of Mysore soared 15.52 per cent to trade at 52-week high at Rs 527.50 apiece on the Bombay Stock Exchange. Similarly, shares of State Bank of Travancore rallied 15 per cent and touched 52-week high to trade at Rs 458.
Meanwhile, shares of shares of SBI gained as much as 1.06 per cent in intra-day trade to Rs 209.75 a piece on Bombay Stock Exchange.
In a similar fashion, stocks advanced 0.96 per cent to Rs 209.70 apiece on National Stock Exchange.
Meanwhile, the broader benchmark BSE Sensex was trading at 26,486.82, up 91.11 points, or 0.35 per cent, at 12:10 hours.