SBI gains on raising Rs 3,814 cr via perpetual bonds

State Bank of India gained 1.64% to Rs 334.55 after the bank said it has raised Rs 3,813.60 crore through perpetual bonds to fund its business growth.

The committee of directors for capital raising on Friday, 22 November 2019, accorded approval for allotment of 38,136 non-convertible, taxable, subordinated, unsecured Basel III compliant AT1 bonds in the nature of debentures of face value of Rs 10 lakh each, SBI said in a regulatory filing.

It will bear coupon rate of 8.50% with call option after 5 years or any anniversary date thereafter, aggregating to Rs 3,813.60 crore to the bond subscribers, it added. The announcement was made after market hours on Friday, 22 November 2019.

Meanwhile, the S&P BSE Sensex was up 450 points or 1.11% to 40,809.05.

The SBI stock was trading in the range of Rs 328.50 to Rs 335.10 so far during the day.

In the past one month, shares of State Bank of India rose 18.80% to its current market price of Rs 334.55, outperforming the Nifty PSU Bank index's 12.84% rise in the same period.

On the technical front, the stock's RSI (relative strength index) stood at 69.981. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day and 200-day moving average (DMA) placed at Rs 289.61 and Rs 307.46 respectively.

State Bank of India's net profit surged 613.60% to Rs 937.79 crore on 12% rise in total income to Rs 76,335.08 crore in Q2 September 2019 over Q2 September 2018.

As on 30 September 2019, the Government of India held 57.13% stake in the bank.

Powered by Capital Market - Live News