SBI gains after reducing interest rates on deposits

State Bank of India rose 3.23% to Rs 2,490.05 at 14:27 IST on BSE after the bank said it will revise the interest rates on bulk and retail term deposits from 18 July 2014.

The bank made the announcement during trading hours today, 15 July 2014.

Meanwhile, the BSE Sensex was up 113.68 points, or 0.45%, to 25,120.66.

On BSE, so far 2.05 lakh shares were traded in the counter, compared with an average volume of 3.25 lakh shares in the past one quarter.

The stock hit a high of Rs 2,494 and a low of Rs 2,427.90 so far during the day. The stock hit a 52-week high of Rs 2,833.85 on 26 May 2014. The stock hit a 52-week low of Rs 1,452.90 on 28 August 2013.

The stock had underperformed the market over the past one month till 14 July 2014, falling 7.45% compared with 0.88% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 20.95% as against Sensex's 10.51% rise.

The large-cap company has an equity capital of Rs 746.57 crore. Face value per share is Rs 10.

State Bank of India (SBI) announced that under bulk deposits (Rs 1 crore and above) schemes, interest rate on deposits maturing between 7 days to 60 days will be reduced by 25 basis points (bps) to 6.25% from 6.50% earlier. Interest rate on deposits maturing between 61 days to less than 1 year will be reduced by 25 bps to 6.75% from 7% earlier.

Under retail term deposits (below Rs 1 crore) schemes, interest rate on deposits maturing between 7 days to 179 days will be reduced by 50 bps to 7% from 7.50% earlier.

State Bank of India's net profit declined 7.83% to Rs 3040.74 crore on 16.82% growth in total income to Rs 42443.27 crore in Q4 March 2014 over Q4 March 2013.

The Government of India holds 58.60% stake in SBI (as per the shareholding pattern as on 30 June 2014).

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