SBI gains after reducing stake in NSE

State Bank of India rose 1.41% to Rs 222.75 at 15:15 IST on BSE after the state-run bank announced that it has sold 5% stake in National Stock Exchange of India for Rs 911.25 crore.

Meanwhile, the BSE Sensex was up 130.57 points, or 0.48%, to 27,275.48.

On BSE, so far 15.11 lakh shares were traded in the counter, compared with average daily volume of 27.45 lakh shares in the past one quarter. The stock hit a high of Rs 224.40 and a low of Rs 221.65 so far during the day. The stock hit a 52-week high of Rs 291.85 on 5 August 2015. The stock hit a 52-week low of Rs 148.30 on 12 February 2016. The stock had outperformed the market over the past 30 days till 1 July 2016, rising 9.52% compared with 1.12% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 12.24% as against Sensex's 7.42% rise.

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

State Bank of India (SBI) announced after market hours on Friday, 1 July 2016, that it sold 5% stake in National Stock Exchange of India (NSE) to Mauritius-based foreign institutional investor Veracity Investments at Rs 4,050 per share. Post this transaction, SBI holds 5.19% stake in NSE while its subsidiary SBI Capital Markets holds another 4.33% in the NSE.

Meanwhile, SBI and Reliance Industries (RIL) signed shareholders' agreement on 30 June 2016 for setting up payments bank. RIL will hold a majority 70% stake and SBI as joint venture partner will hold 30% equity stake in the proposed payments bank. All requisite regulatory and statutory approvals will now be sought for operationalizing the payments bank. The announcement was made after market hours on Friday, 1 July 2016.

SBI's net profit fell 66.2% to Rs 1263.81 crore on 10.1% increase in total income to Rs 53526.97 crore in Q4 March 2016 over Q4 March 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 31 March 2016).

Powered by Capital Market - Live News