SBI drops after slashing lending rates

State Bank of India lost 2.42% to Rs 243.70 at 12:31 IST on BSE after the bank reportedly announced slashing of its marginal cost of lending rate by 90 basis points across all maturities.

Meanwhile, the S&P BSE Sensex was down 127.10 points or 0.48% at 26,499.36.

On the BSE, 12.61 lakh shares were traded on the counter so far as against the average daily volumes of 21.45 lakh shares in the past one quarter. The stock had hit a high of Rs 253.50 and a low of Rs 242.80 so far during the day.

The stock had hit a 52-week high of Rs 288.50 on 11 November 2016 and a 52-week low of Rs 148.30 on 12 February 2016. The stock had underperformed the market over the past one month till 30 December 2016, declining 3.35% compared with the Sensex's 0.1% fall. The scrip had, however, outperformed the market over the past one quarter declining 0.38% as against the Sensex's 4.45% fall.

The large-cap public sector bank has equity capital of Rs 776.28 crore. Face value per share is Re 1.

State Bank of India (SBI) has reportedly cut its marginal cost of lending rate, or MCLR, by 90 basis points across all maturities. MCLR is the benchmark rate to which all loans are linked. The bank has reduced its key one-year benchmark MCLR to 8% per annum. The one-year benchmark is used for pricing home and car loans. Loans are provided to borrowers at 35 basis points over the MCLR. SBI's new rates were effective from yesterday, 1 January 2017.

SBI's net profit fell 34.6% to Rs 2538.32 crore on 8.3% growth in total income to Rs 50742.99 crore in Q2 September 2016 over Q2 September 2015.

SBI is India's biggest bank in terms of branch network. The Government of India currently holds 60.18% stake in SBI (as per the shareholding pattern as on 30 September 2016).

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