Shares of SBI's associate banks rise on merger move

Shares of State Bank of India's associate banks surged by nearly 16% on Wednesday a day after the State Bank of India (SBI) decided to submit a proposal to the Central government to merge its five associate banks with itself.

The three associate banks of SBI- State Bank of Mysore, State Bank of Travancore, State Bank of Bikaner and Jaipur-are listed on the stock exchanges.

Its other two associate banks- State Bank of Hyderabad and State Bank of Patiala- are not listed on the stock exchanges.

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"The board of directors discussed the possibility of acquiring its five associate banks - State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore - including their assets and liabilities," the company said in e-mailed statement on Tuesday.

"This discussion is purely exploratory at this stage and not certain," the company added.

Watch the news capsule on SBI's merger of associate banks:

The stock of State Bank of Mysore rose up by 15.63% to Rs 493.40 on the Bombay Stock Exchange (BSE) in an early morning trade.

At 11:23 hours, the stock of State Bank of Mysore was trading up 6.96% or Rs 29.70 at Rs 456.40 on the exchange.

The stock of State Bank of Travancore was surged by 11.40% to Rs 444.60 in the morning trade on the stock exchange.

At 11:23 hours, the stock of State Bank of Travancore was trading up by 4.31% or Rs 17.20 at Rs 416.30 on the BSE.

SBI merger is also seen as window for Grand bank on world stand. Watch the full news story here:

The stock of State Bank of Bikaner and Jaipur was trading up by 4.52% to Rs 532.00 on the exchange.

However, at 11:23 hours, the stock of State Bank of Bikaner and Jaipur was trading down 0.28% or Rs 1.45 at Rs 507.50 on the BSE.

The stock of State Bank of India (SBI), the largest commercial bank in the country, was up by 1.24% to Rs 179.25 on the BSE.

At 11:26 hours, the shares of SBI were trading up by 0.93% or Rs 1.65 at Rs 178.70 per scrip on the stock exchange.