Rs 37 trillion in assets, 22,500 branches, 58,000 ATMs; SBI stock surges 20%

Shares of SBI, however, fell by 1.18 % to Rs 213.10 on BSE today. Image Source: Reuters

State Bank of India subsidiaries extended their rally for a second straight day today, surging up to 20% on the bourses.

This comes a day after the Cabinet cleared the merger of SBI with its associate banks that would pave the way for the state-owned lender to become a global banking behemoth.

Shares of State Bank of Mysore jumped 19.99 % to Rs 657.45, State Bank of Travancore soared 19.75 % to Rs 573.50 and State Bank of Bikaner and Jaipur zoomed 19.23 % to Rs 714.95 on BSE.

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These stocks had gained up to 20 % in the previous trading session also.

Shares of SBI, however, fell by 1.18 % to Rs 213.10 on BSE today.

SBI Chairperson Arundhati Bhattacharya yesterday said the merger of SBI and its associate banks would benefit both sides.

"Currently, no Indian bank features in the list of top 50 banks of the world. With the merger, visibility at global level is likely to increase. Customers of the associates and subsidiaries of the bank will also be beneficiaries," she had said.

SBI had last month mooted the proposal for merger of its five subsidiary banks with itself and acquisition of the newly set up Bharatiya Mahila Bank.

SBI has five associate lenders -- State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.

Among the associate banks, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed.

The merged entity will become a banking behemoth, which could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over $ 555 billion, with 22,500 branches and 58,000 ATMs.

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