SBI surges on plan to merge its five subsidiaries with itself

State Bank of India (SBI) is currently trading at Rs. 2704.00, up by 39.25 points or 1.47% from its previous closing of Rs. 2664.75 on the BSE. The scrip opened at Rs. 2683.00 and has touched a high and low of Rs. 2731.05 and Rs. 2683.00 respectively. So far 137871 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 2833.85 on 26-May-2014 and a 52 week low of Rs. 1452.90 on 28-Aug-2013. Last one week high and low of the scrip stood at Rs. 2760.00 and Rs. 2620.00 respectively. The current market cap of the company is Rs. 201985.35 crore. The promoters holding in the company stood at 58.60%, while Institutions and Non-Institutions held 30.53% and 8.75% respectively. State Bank of India (SBI), the nation’s biggest lender is all set to merge its five associate banks with itself to fund the economy that is on the cusp of a strong growth like China two decades ago. The combination of the associates will enhance the asset base of SBI to Rs 21.9 lakh crore, and add 5,658 branches to its 15,143 branches. The combined market share will rise to 24%, from 19%, making it a formidable force. SBI’s five associates are State Bank of Travancore, State Bank of Hyderabad, State Bank of Patiala, State Bank of Bikaner & Jaipur and State Bank of Mysore. Although consolidation was first mooted about a decade ago, nothing much happened with the staff unions being a stumbling block, and the previous United Progressive Alliance’s policy inertia.