New Delhi: Defying the broader market trend,shares of State Bank of India today settled with gains of over 4 per cent, boosting market capitalisation of the state-run lender by Rs 7,995.7 crore.
The board of SBI on August 18 approved the merger of five associate lenders and Bharatiya Mahila Bank with itself while protecting the interest of the existing staff.
Shares of the country's largest public sector bank today opened on a firmer note at Rs 255, hitting an intra-day high of Rs 260. However, the stock closed at Rs 258.50, up 4.15 per cent, on BSE. The market capitalisation of the lender improved by Rs 7,995.7 crore to Rs 2,00,667.8 crore.
On NSE, the stock closed 4.06 per cent higher at Rs 258.50.
Reliance Securities in a research note today said "swap ratio was largely in line with our expectation and share price of listed subsidiaries will adjust in line with valuation and swap ratio".
"We do not expect any major price action at SBI counter as the swap ratio being largely neutral. Moreover, we believe that SBI will continue to surprise positively on the operating and asset quality front in the coming quarter as it has been able to manage cleaning up of its loan book effectively," it added.
Meanwhile, State Bank of Bikaner & Jaipur settled at Rs 683.20, up 1.47 per cent, while State Bank of Travancore ended higher by 6.17 per cent at Rs 537.05 on BSE.
However, State Bank of Mysore closed with losses, at Rs 546.55, down 12.09 per cent over its previous closing price.
"We expect stock price of SBM would correct by around 10-12 per cent and envisage marginal rise in stock prices of SBBJ and SBT," Reliance Securities said.
"The central board of directors of SBI has accorded its approval to the scheme of acquisition of the State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and Bharatiya Mahila Bank (BMBL) by the State Bank of India," SBI had said in a regulatory filing to stock exchanges.
Later, in an update, it also approved separate schemes of acquisition of State Bank of Patiala and State Bank of Hyderabad with SBI.
