SBI gains after board approval for divestment of 3.9% stake in life insurance unit

State Bank of India rose 0.47% to Rs 267.25 at 9:25 IST on BSE after the bank announced that its executive committee of the central board approved divestment of 3.9% stake in SBI Life Insurance Company.

The announcement was made after market hours on Friday, 9 December 2016.

Meanwhile, the S&P BSE Sensex was down 143 points or 0.45% at 26,628.02.

On the BSE, 1.32 lakh shares were traded in the counter so far as against average daily volume of 24.23 lakh shares in the past one quarter. The stock had hit a high of Rs 269.45 and a low of Rs 257.95 so far during the day.

State Bank of India (SBI) announced that the executive committee of the central board (ECCB) of the bank at a meeting held on 9 December 2016, approved divestment of 3.9 crore equity shares constituting 3.9% stake in SBI Life Insurance Company at a price of Rs 460 per share, subject to all regulatory approvals.

State Bank of India'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.

State Bank of India 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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