| There were rumours about a stock split and the price of the follow-up issue is likely to be high. The FII investment limit in the bank, currently at 20 per cent, is also expected to be raised. |
| In the early trades, a block deal of 34.65 lakh shares was executed in the institutional segment on BSE at Rs 1,070 per share. This was at a huge premium to the market price. The stock witnessed high volatility. It touched a high of Rs 976.9 and ended the day with a gain of 5.64 per cent to Rs 954.6. |
| Mitesh Shah, associate vice-president - previlaged client group - sales, at Brics, says, "Since the limit has already been touched, FIIs have to buy in block from other FIIs. Buying interest in the stock stems from the reforms that have been promised by the finance minister in the banking sector. This would enable banks to raise Tier-II capital through hybrid instruments. The SBI Act is expected to be modified. This would merge the subsidiaries into the bank." |
| Meanwhile, another public sector bank counter "� PNB "� also witnessed block deal. And stock across sectors had witnessed block deals. About 7.8 lakh PNB shares changed hands in the institutional segment at an average price of Rs 470.13. According to Manish Sonthalia, vice-pesident - equity strategy at Motilal Oswal Securities, SBI generally commands a premium in block deals. |
| Possibility of a stock split is another factor of interest. Moreover, the merger of the subsidiaries would create synergies. However, he feels that the FII limit in the bank is unlikely to be increased. |
| Another bank that saw movement on Tuesday was UTI Bank. Market participants view it as one of the efficient banks in the private sector. The stock has been on an uptrend over the past few days. |
| It has also recorded good business growth over the last few years. Block deals in the public sector banks also improved the general sentiment in the sector. |
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