Mumbai, Aug. 24: Shares of State Bank of India’s subsidiaries State Bank of Travancore, State Bank of Bikaner & Jaipur, and State Bank of Mysore soared between 17-20 per cent for the second day on Tuesday on rumours of the merger of these banks with SBI.
Most banks saw their shares close in the red, though SBI was up `22.15. “The ultimate merger of these banks with SBI is inevitable but it will take some time. The merger of the State Bank of Indore took a year,” says banking analyst, Mr Hemendra Hazari of Karvy Stock Broking.
He said the State Bank of Patiala and State Bank of Hyderabad, which are unlisted will be merged first and then the others will be considered as they have minority shareholders.
There is no future for these subsidiaries as the SBI historically neglected them.
Even the chairman of these banks is the SBI chairman himself and the managing directors are SBI officials. So there is no incentive for the officials of these subsidiaries who can never aspire to the top posts.