SBI gains on plans to raise funds

State Bank of India rose 1.35% to Rs 1846 at 13:09 IST on BSE after the bank said it plans to raise up to Rs 9576 crore through issue of equity shares to institutional investors or a follow-on public offer or any other mode.

Meanwhile, the S&P BSE Sensex was up 124.72 points or 0.6% at 20,916.65.

On BSE, 1.48 lakh shares were traded in the counter as against average daily volume of 4.22 lakh shares in the past one quarter.

The stock hit a high of Rs 1853 and a low of Rs 1826 so far during the day.

The stock had outperformed the market over the past one month till 29 November 2013, rising 4.85% compared with the Sensex's 0.65% fall. The scrip had also outperformed the market in past one quarter, jumping 22.31% as against Sensex's 12.99% rise.

State Bank of India (SBI) said that the bank requires capital to match the anticipated growth in assets. Considering the business growth during the current year as well as that for the years to come, there is a strong need for higher capital as required under the Basel III norms, particularly Tier-I Capital, SBI said.

SBI's consolidated net profit declined 32.8% to Rs 3072.77 crore on 6.4% growth in total income to Rs 53118.63 crore in Q2 September 2013 over Q2 September 2012.

The Government of India (GoI) holds 62.31% stake in SBI (as per the shareholding pattern as on 30 September 2013).

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