Date:20/04/2007 URL: http://www.thehindubusinessline.com/2007/04/20/stories/2007042003090600.htm

Scrips gain on bourses

Our Bureau

Mumbai April 19 Subsidiaries of State Bank of India moved up on the bourses with the Union Cabinet altering their operational guidelines.

According to analysts, it will enable the banks to raise effective capital from the equity markets.

"Now the subsidiaries will be able to raise more capital from the equity markets and it will improve their capital adequacy. They will also expand their business and branch network," said a banking analyst.

Analysts said this amendment would also have a positive impact on SBI share valuation.

"It will improve asset growth of SBI as a whole and the return on equity will also be high," said the analyst.

SBI's scrip moved up by 1.72 per cent to Rs 1,053.25.

State Bank of Mysore rose by 10 per cent to close at Rs 5,706, State Bank of Travancore was up 5 per cent to Rs 3,297 while State Bank of Bikaner and Jaipur moved up 1.78 per cent to Rs 3,454. 95.