Monday, April 6, 2009

India's Largest Commercial Bank By Allotment Of Equity Share - April 06, 2009

Meanwhile, the BSE Sensex was up 202.64 points, or 1.96%, to 10551.47. On BSE, 11.58 lakh shares were traded in the counter. The scrip had an average daily volume of 10.01 lakh shares in the past one quarter. The stock hit a high of Rs 1199 and a low of Rs 1113.15 so far during the day. The stock had hit a 52-week high of Rs 1840 on 5 May 2008 and a 52-week low of Rs 894 on 9 March 2009.

The stock had risen 12.06% in three trading sessions to Rs 1145.35 on 2 April 2009 from Rs 1022 on 30 March 2009. Yet, the stock underperformed the market over the past one month till 2 April 2009, rising 15.08% as compared to the Sensex's 20.24% rise. It had also underperformed the market in the past one quarter, falling 13.88% even as the Sensex rose 3.92%.

India's largest commercial bank by assets has an equity capital of Rs 634.88 crore. Face value per share is Rs 10.

The current price of Rs 1130.05 discounts the bank's Q3 December 2008 annualized EPS of Rs 156.15, by a PE multiple of 7.23.

State Bank of India (SBI) Chairman O P Bhatt had told reporters on 29 March 2009, that SBI's credit growth in January-March 2009 quarter was lower than expected. He added that there should be some downward revision in lending as well as deposit rates in the new financial year. The Asset-Liability Committee of SBI, Bhat said, would take a call on interest rates as and when required.

Bhatt also said there was enough liquidity though there was a significant pressure on interest margins. SBI had ample liquidity and did not plan to go in for further capital raising. The bank in fact recorded Rs 1,000-crore deposit everyday in October-November 2008, Bhat said.

SBI has 43% market share and the market capitalisation of the bank was more than that of Citibank, he said.

Earlier, SBI had revised the deposit rates downwards by 40 basis points (bps) to 50 bps for a few maturities effective from 9 March 2009.

The bank had on 20 February 2009 said that it had frozen interest rates for new car loans at 10% and loans to farmers against warehouse receipts at 8%. The revised car loan rates will be on offer for a limited period from 23 February 2009 to 31 May 2009 and the interest rate will be reset at the applicable card rate after 1 June 2010.

Similarly, SBI, on 31 January 2009, had announced a freeze on interest rates on new home loans at 8% for a period of one year.

Meanwhile, SBI's advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008. Higher advance tax payment have raised expectations of good Q4 numbers from the state-run bank.

State Bank of India's net profit jumped 37% to Rs 2478.42 crore on 38.3% gain in net sales to Rs 21255.90 crore in Q3 December 2008 over Q3 December 2007.

SBI provides banking, treasury and credit management services to individual and corporate clients. The government of India holds 59.41% stake in the bank as on 31 December 2008.

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