The State Bank of India clarified on report published by newspaper titled, "Banking behemoth: SBI to merge 5 arms with itself."

"As regards a news item regarding merger of Associate Banks of State Bank of India, we clarify that no such proposal has been formally taken up for approval. While the Bank has always had plans to consider merger of the Associate Banks, eventually, a position which has been stated by the Bank from time to time since long, the matter had not been under active consideration for quite some time. Going forward, the Bank may examine the merger options afresh, when considered appropriate, but preparation of a possible roadmap would take a few months," the company said.

Shares of the bank gained Rs 23.25, or 0.87%, to trade at Rs 2,688. The total volume of shares traded was 200,163 at the BSE (2.12 p.m., Wednesday).