SBI gains on foreign bank upgrade

State Bank of India rose 1.47% to Rs 2,560.60 at 11:48 IST on BSE, on reports that a foreign bank has upgraded the stock to "buy" from "hold".

Meanwhile, the BSE Sensex was up 156.65 points, or 0.59%, to 26,576.20

On BSE, so far 1.09 lakh shares were traded in the counter, compared with an average volume of 2.74 lakh shares in the past one quarter.

The stock hit a high of Rs 2,576.50 and a low of Rs 2,527.95 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 22 August 2014, falling 0.02% compared with 1.51% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.47% as against Sensex's 8.39% rise.

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

A foreign bank has reportedly upgraded State Bank of India (SBI) to "buy" from "hold", saying that SBI will benefit from improving economy in terms of slippages, credit costs and non-performing loans. SBI is addressing concerns about costs and managing liabilities and margins, the foreign bank reportedly said.

SBI's net profit rose 3.3% to Rs 3349.08 crore on 12.6% growth in total income to Rs 40739.21 crore in Q1 June 2014 over Q1 June 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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