Meanwhile, the BSE Sensex was down 170.12 points, or 1.11%, to 14,710.60
On BSE, 99364 shares were traded in the counter. The scrip had an average daily volume of 9.47 lakh shares in the past one quarter.
The stock hit a high of Rs 1670 and low of Rs 1620 so far during the day. It hit a 52-week high of Rs 1935 on 3 June 2009 and 52-week low of Rs 894 on 9 March 2009.
The State Bank of India (SBI) stock had plunged 14.01% to Rs 1642 on 15 June 2009 from a recent high of Rs 1909.50 on 2 June 2009 on concerns about high amount of restructured loans. As per reports, SBI's standard loans restructured together with pending applications for restructured loans from clients was close to Rs 21000 crore or about 4% of the loan book as at end March 2009.
Yet, the large-cap bank had outperformed the market over the past one month till 15 June 2009, rising 25.15% as compared to the Sensex's return of 22.20%. It had also outperformed the market in the past one quarter, surging 72.29% as compared to the Sensex's return of 69.88%.
India's largest commercial bank has an equity capital of Rs 634.88 crore. Face value per share is Rs 10.
The current price of Rs 1659.10 discounts the bank's year ended March 2009 EPS of Rs 143.67, by a PE multiple of 11.54
State Bank of India (SBI) has reportedly paid 61.38% higher advance tax at Rs 1070 crore in the first installment of 15 June 2009 over the first installment of 15 June 2008, raising expectations of robust Q1 June 2009 results from the state-run bank.
Entities that earn beyond a specified level are required to pay advance tax in four installments with the first one due on 15 June, when at least 15% of the liability has to be paid. By the time the second installment falls due on 15 September, at least 40% of the liability for the year has to be deposited and this amount increases to 75% by 15 December and 100% by 15 March.
On Saturday, 13 June 2009 State Bank of India (SBI) announced an across-the-board 25 basis point cut in deposit rates which will bring down its cost of funds. SBI said the cut in deposit rates will be effective from 15 June 2009. Following the cut, a one-year fresh fixed deposit (FD) with SBI will fetch 6.25% from 6.50% earlier interest and the popular 1,000-day deposit scheme will earn 7.50% from 7.75% earlier. This is the third cut in deposit rates by SBI in the current fiscal. Earlier SBI had announced rates cuts of 25 and 50 basis points each in April 2009 and May 2009.
Bank interest rates are falling in India after the central bank began slashing interest rates last October to lift a slowing economy.
Meanwhile, the Congress-led United Progressive Alliance (UPA) government may go ahead on a plan to merge six associate banks with State Bank of India to create a Indian banking behemoth. The process of creating a Indian banking behemoth was set in motion two years ago, but got derailed due to resistance from the Left parties. Although the board of SBI and its associate bank, the State Bank of Saurashtra, had approved the merger in August 2007, the government approved it only in August 2008 after the Left withdrew its support to the government.
A merger of the associate banks with itself will give SBI the full benefit of size. SBI and its associate banks enjoy a fourth of the market share.
The SBI management may well be keen to merge the six associates at the earliest, but that will hinge on government approval since the government controls 59.41% of the equity in the bank.
SBI holds 100% stake in State Bank of Hyderabad and State Bank of Patiala while in the remaining four banks - State Bank of Bikaner and Jaipur, State Bank of Indore, State Bank of Travancore and State Bank of Mysore, its shareholding ranges between 75% and 98%.
The Congress-led UPA government on 16 May 2009 got a clear mandate in the recently concluded parliamentary election.
State Bank of India's net profit rose 45.6% to Rs 2742.31 crore on a 34.6% gain in operating income to Rs 22060.61 crore in Q4 March 2009 over Q4 March 2008.
The bank reported 35.55% surge in net profit to Rs 9,121.24 crore on 32.67% increase in operating income to Rs 76,479.22 crore in the year ended March 2009 over the year ended March 2008.
On a consolidated basis, the bank's net profit rose 22.26% to Rs 10,955.28 crore on 25.35% increase in total income to Rs 1,13,093.09 crore in the year ended March 2009 over the year ended March 2008.
The bank posted higher profit on the back of higher other income and treasury income.
The bank's gross non-performing assets (NPA) rose 21.43% to Rs 15,588.60 crore as at 31 March 2009 from Rs 12,837.34 crore as on 31 March 2008. The ratio of gross NPA to gross advances declined to 2.84% as of 31 March 2009 from 3.04% as of 31 March 2008. The net NPA as of 31 March 2009 was at 1.76%, the bank said.
At the time of announcing results, the board of directors of the bank recommended a dividend at the rate of Rs 29 per share (290%).
SBI 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.
Earlier, SBI had on 31 January 2009 announced a freeze on interest rates on new home loans at 8% for a period of one year.
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 March 2009.