SBT jumps on board's nod for preferential allotment

State Bank of Travancore rose 3.62% to Rs 434.60 at 9:16 IST on BSE after the bank said its board has approved preferential allotment not exceeding Rs 385 crore to State Bank of India subject to shareholders' & any other required statutory approvals.

The announcement was made after market hours on Wednesday, 26 March 2014.

Meanwhile, the S&P BSE Sensex was up 25.86 points or 0.12% at 22,121.16.

On BSE, so far 2,267 shares were traded in the counter as against average daily volume of 12,000 shares in the past two weeks.

The stock hit a high of Rs 440 and a low of Rs 431.65 so far during the day.

State Bank of Travancore (SBT)'s board of directors at its meeting held on Wednesday, 26 March 2014, also approved in principle for increasing the equity capital of the bank by way of issue of new shares on rights basis including share premium not exceeding Rs 629 crore. The board further declared an interim dividend of Rs 2.50 per share to its shareholders for the year ending 31 March 2014. The date of payment of interim dividend is fixed as 22 April 2014.

SBT's net profit declined 88.8% to Rs 14.76 crore on 13.3% growth in total income to Rs 2601.99 crore in Q3 December 2013 over Q3 December 2012.

State Bank of Travancore is an affiliate of State Bank of India (SBI), which is India's biggest commercial bank in terms of branch network. SBI holds 75% stake in State Bank of Travancore (as per the shareholding pattern as on 31 December 2013).

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