 "State Bank of India board approves 1:10 share split")
In a bid to increase the liquidity of its stock, State Bank of India (SBI) has decided to split its share in the ratio of 1:10. This means, one equity share with a face value Rs 10 will be split into 10 shares of Re 1 each.
“The central board of SBI at its meeting has approved to reduce the face value of equity shares of the bank from Rs 10 per share to Re 1 per share and to increase the number of issued shares in proportion thereof,” the bank said in a statement on Wednesday.
The shares of SBI, India’s largest lender, closed at Rs 2,487.40 apiece on Wednesday on the BSE, 2.68 per cent down from the previous close.
The decision is subject to government and regulatory approvals.
SBI Chairman Arundhati Bhattacharya said the decision to split the stock will enhance broader investor participation, specifically retail participation and increase in demand will enhance the bank’s price-to-earnings ratio.
Earlier this month, public sector lender Punjab National Bank and private lender ICICI Bank had also announced a share split in the ratio of 1:5.
“The central board of SBI at its meeting has approved to reduce the face value of equity shares of the bank from Rs 10 per share to Re 1 per share and to increase the number of issued shares in proportion thereof,” the bank said in a statement on Wednesday.
The shares of SBI, India’s largest lender, closed at Rs 2,487.40 apiece on Wednesday on the BSE, 2.68 per cent down from the previous close.
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The decision would be reflected in the reduction in face value of equity shares in the existing global depository receipt (GDR) programme, the bank said.
The decision is subject to government and regulatory approvals.
SBI Chairman Arundhati Bhattacharya said the decision to split the stock will enhance broader investor participation, specifically retail participation and increase in demand will enhance the bank’s price-to-earnings ratio.
Earlier this month, public sector lender Punjab National Bank and private lender ICICI Bank had also announced a share split in the ratio of 1:5.