SP Tulsian of sptulsian.com shares his view on State Bank's subsidiaries.
Tulsian told CNBC-TV18, "SBI subsidiaries, we see this kind of upmove, it goes up by 30-40% and suddenly the rally gets fizzled out mainly on the hopes that these all banks are likely to get merged because in all these three banks which are listed, State Bank is holding close to about 75% stake in them and the conversion ratio or the swap ratio if the merger goes ahead will be quite beneficial in the interest of the smaller or the subsidiaries. But I don't know whether the management, because sometimes inspite of having the legislation or the clearances from the government side or the regulatory side whether the government will really - because we have seen that happening at the time of merger of State Bank of Indore that there was lot of union problem and all that and management have indicated that probably they may not go ahead for merger of any of the subsidiaries in FY12."
He further added, "If you do not have the positive development happening on a sustaining basis in terms of the announcements or all the action. The rally in these shares gets fizzled out and again goes back and corrects. So generally the investors have lost money whenever they have entered after seeing a rise of 25-30% in all the subsidiary stocks."
