CapitalMarket.com - SBI vaults as government agrees to infuse Rs 7900 crore
Hot Pursuit Tuesday, January 31, 2012 09:30 Hrs IST

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SBI vaults as government agrees to infuse Rs 7900 crore

State Bank of India gained 2.51% to Rs 2,040.70 at 09:19 IST on BSE after the government agreed to infuse approximately Rs 7,900 crore into the state-run bank through a preferential issue.

Meanwhile, the BSE Sensex was up 113.71 points, or 0.67%, to 16,977.01

On BSE, 55,280 shares were traded in the counter compared with average volume of 7.39 lakh shares in the past one quarter.

The stock hit a high of Rs 2,049.95 and a low of Rs 2,019 so far during the day. The stock had hit a 52-week low of Rs 1,576 on 20 December 2011. The stock had hit a 52-week high of Rs 2,959.90 on 25 April 2011.

The stock had outperformed the market over the past one month till 30 January 2012, gaining 22.92% compared with the Sensex's 9.11% rise. The scrip, however, underperformed the market in past one quarter, rising 4.39% as against 5.29% decline in the Sensex.

India's largest commercial bank by branch network has an equity capital of Rs 635 crore. Face value per share is Rs 10.

After market hours on Monday, 30 January 2012, State Bank of India (SBI) said the Government of India (GoI), vide its letter dated 30 January 2012, has conveyed its approval under section 5(2) of the SBI Act to increase the issued capital in SBI by way of preferential allotment of equity shares to GoI to the extent of approximately Rs 7,900 crore (including premium). The GoI held 59.4% stake (as at end December 2011) in SBI. Following the fund infusion, the GoI's shareholding in the bank will go up to 64-65%, a report indicated.

On a consolidated basis, SBI net profit rose 46.8% to Rs 3470.43 crore on 8.8% growth in total income to Rs 41249.08 crore in Q2 September 2011 over Q2 September 2010.

SBI is India's largest commercial bank with a network of over 13,000 branches and 5 associate banks. The bank offers a wide range of banking products and services to corporate and retail customers.

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