The bellwether stock, State Bank of India has risen above 3% during the first two hour of trade as investors were cheered up the news release of fund infusion in the bank by the Government.
The bank has received approval from Government to infuse fund for business development for the next two years. The bank will allot preference shares of worth Rs.7,900 crore to the Government, after which Government holdings in the bank would raise to 65% from the present 59.4%.
Post the fund raising, the tier I capital of the bank increased to about 8 percent. The bank Capital Adequacy Ratio (CAR) was stood at 11.4 percent as of September, 2011.
At the end of September quarter, Tier I capital of the bank was at 7.4 percent against the Government required level of 8 percent. The present fund infusion will ensure Government requirement for the maintenance of Tier I capital.
Last year, SBI had sought Government approval to raise Rs.20,000 crore through a rights issue to infuse fund for the growth plans.
Following the news release, the shares of SBI were up 2.31% to Rs.2,036.75 per share during the early trade on BSE. The scrip has hit an intraday high of Rs.2,061 per share and an intraday low of Rs.2,019 per share in the trade so far.
Email this page
| ursulaN says, Personal finance is the (10 weeks 4 days ago) |
| cbhattarai says, Budgeting Tips (16 weeks 2 days ago) |
| cbhattarai says, Budgeting Tips (16 weeks 2 days ago) |
| cbhattarai says, reply (16 weeks 2 days ago) |
| veronicaD says, Loans recently provides us (20 weeks 23 hours ago) |
| Ramalingam K says, With proper tax planning you (21 weeks 22 hours ago) |
| Ramalingam K says, With proper tax planning you (21 weeks 22 hours ago) |
| cbhattarai says, Paying tax in advance is (21 weeks 1 day ago) |