SBI advances after board extends validity period to raise capital

State Bank of India gained 1.1% to Rs 299 at 11:10 IST on BSE after the bank announced that its board approved extension of validity period to raise the remaining additional tier I capital.

The announcement was made after market hours yesterday, 26 July 2017.

Meanwhile, the S&P BSE Sensex was up 278.30 points or 0.86% at 32,661.39.

On the BSE, 3.34 lakh shares were traded on the counter so far as against the average daily volumes of 12.92 lakh shares in the past one quarter. The stock had hit a high of Rs 299.70 and a low of Rs 296.35 so far during the day. The stock had hit a 52-week high of Rs 315 on 19 May 2017 and a 52-week low of Rs 223.20 on 4 August 2016.

The stock had underperformed the market over the past one month till 26 July 2017, gaining 2.39% compared with the Sensex's 4% rise. The stock had also underperformed the market over the past one quarter, rising 2.39% as against the Sensex's 7.46% rise. The scrip had, however, outperformed the market over the past one year, gaining 30.57% as against the Sensex's 15.75% rise.

The large-cap state-run bank has equity capital of Rs 863.21 crore. Face value per share is Re 1.

State Bank of India (SBI) announced that its executive committee of the central board approved extension of validity period to raise the remaining additional tier I capital to the tune of Rs 2000 crore till 31 March 2018 and accordingly authorized bank to raise upto Rs 2000 crore additional tier I capital, by way of issue of Basel III compliant perpetual debt instruments in dollar and/or rupee, at par, through private placement to overseas and/or Indian investors.

The issue will be in such number of tranches, at such times as may be considered appropriate and on such coupons as may be decided at the time of actual issuance.

The committee of directors for capital raising had earlier authorized SBI to raise additional tier I capital upto Rs 11100 crore till 31 March 2017. The bank has raised additional tier I capital in domestic and overseas market to the tune of Rs 9100 crore during the financial year 2016-2017 (FY 2017).

State Bank of India's net profit surged 122.7% to Rs 2814.82 crore on 7.8% growth in total income to Rs 57720.07 crore in Q4 March 2017 over Q4 March 2016.

Government of India held 57.07% stake in State Bank of India (as on 12 June 2017).

Powered by Capital Market - Live News