State Bank of India (SBI) surged 10.09% to end at Rs 301.70 on BSE after Finance Minister slashed effective corporate tax to 25.17% inclusive of all cess and surcharges for domestic companies.As on 31 March 2019, SBI paid a hefty corporate tax of 46.36%.
Meanwhile, the S&P BSE Sensex soared 1,921 points or 5.32% to 38014.62.
On the BSE, 44.18 lakh shares were traded in the counter so far compared with average daily volumes of 9.16 lakh shares in the past two weeks. The stock hit a high of Rs 307.6 and a low of Rs 268.55 so far during the day.
The stock hit a 52-week high of Rs 373.7 on 18 Jul 2019. The stock hit a 52-week low of Rs 247.65 on 26 Oct 2018.
In a press conference held in Goa today, the Finance Minister Nirmala Sitharaman announced slashing of corporate tax rate for domestic companies and new domestic manufacturing companies. The FM added that the ordinance for cutting tax rate has been passed.
The FM said that the new corporate tax rate will be 22% without exemptions. The effective corporate tax rate after surcharge will stand at 25.17%.
The said measures have been announced with expectation to widen the tax basked with lower tax rate. Economic buoyancy will itself generate revenue, the FM said.
In her closing remarks, the FM said that the new corporate are to be among lowest in SouthEast Asia.
SBI reported a net profit of Rs 2312.20 crore in Q1 June 2019 over a net loss of Rs 4875.85 crore in Q1 June 2018. The total income of the bank rose 7.9% to Rs 70653.23 crore in Q1 June 2019 over Q1 June 2018.
The Government of India held 57.13% stake in SBI (as on 30 June 2019).
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