SBI subsidiaries in limelight

SBI subsidiaries are in the limelight today. State Bank of Bikaner & Jaipur hit a new 52-week high at Rs.796; State Bank of Mysore rose over 13.5% to Rs.637.70 and State bank of Travancore hit a new 52-week high today at Rs.619.

The much awaited news has finally happened. It has received Cabinet approval to merge its five subsidiaries, making SBI one of the top 50 banks in the world.  A formal notification in this regard is awaited from Government of India wherein the effective date of merger will be indicated.

Just to get the size in perspective – the merged SBI will be one-fifth of India’s GDP and will be five times the balance sheet size of ICICI Bank.