The board of country’s largest lender, SBI – State Bank of India, has approved the merger of its associate banks, along with Bhartiya Mahila Bank, with itself.
According to the approved merger ratios for each banks the scheme offers for allotment of :
- Twenty eight (28) equity shares of Rs.1 each of State Bank of India for every 10 equity shares of Rs.10 each of State Bank of Bikaner and Jaipur.
- Twenty two (22) equity shares of Rs.1 each of State Bank of India for every 10 equity shares of Rs.10 each of State Bank of Travancore.
- Twenty two equity shares of Rs.1 each of State Bank of India for every 10 equity shares of Rs.10 each of State Bank of Mysore.
- Over 4 cr equity shares of Rs.1 each of State Bank of India for every 100 cr equity shares of Rs.10 each of Bhartiya Mahila Bank.
State Bank of India (SBI) CFO Anshula Kant told CNBC-TV18 that 8 valuation experts had been appointed to arrive at the share swap and May 16, the day when the merger was first announced, was decided to be the valuation cut-off date.
SBI share price is currently trading 3.28 per cent higher, on the other hand, State Bank of Mysore share price is trading 10.72 per cent lower on NSE. State Bank of Travancore share price stands 5.89 per cent up while State Bank of Bikaner and Jaipur or SBBJ share price edges 2.08 per cent higher on NSE.
Lastly, she concluded that the associate banks whose asset quality is generally worse as compared to that of their parents, might witness some NPA pain in the September quarter because SBI seems to clean up their balance sheets and pull them up to its own levels.
No comments:
Post a Comment