Cabinet approves changes to SBI Subsidiaries Bank Act

The Cabinet approved changes to the State Bank of India Subsidiaries Bank Act, reports CNBC-TV18.

That will eventually allow the subsidiaries of the bank to implement stock splits and allow demat trading in these shares.

The bill also allows SBI to reduce its holdings in each unit to 51%. Currently, SBI owns stakes ranging from 74% to 100% in the units. The SBI Bill will next be considered in Parliament.

Following the news, shares of SBI subsidiaries like State Bank of Bikaner rose two percent, State Bank of Mysore shares rose 10 percent and State Bank of Travancore shares rose five percent. SBI shares rose 1.7 percent to Rs 1,053.