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SBI advances after reducing lending rates

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Capital Market
Last Updated : May 03 2016 | 11:28 AM IST

State Bank of India gained 1.37% to Rs 189 at 10:31 IST on BSE, after the bank announced reduction in lending rates by 5 basis points across tenures.

The announcement was made after trading hours yesterday, 2 May 2016.

Meanwhile, the S&P BSE Sensex was up 197.06 points or 0.77% at 25,634.03

On BSE, so far 4.68 lakh shares were traded in the counter as against average daily volume of 29.14 lakh shares in the past one quarter. The stock hit a high of Rs 189.30 and a low of Rs 187 so far during the day. The stock had hit a 52-week high of Rs 305 on 22 May 2015. The stock hit 52-week low of Rs 148.30 on 12 February 2016. The stock had underperformed the market over the past one month till 2 May 2016, falling 4.75% compared with 0.66% gains in the Sensex. The scrip, however, outperformed the market in past one quarter, gaining 10% as against Sensex's 3.66% gains.

The large-cap state-run bank has equity capital of Rs 776.28 crore. Face value per share is Re 1.

State Bank of India (SBI)'s Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 8.90%. MCLR for one-month loans will be 9% and for three-month loans it will be 9.05%. The MCLR on 6-month loans will be 9.10% and for one-year loans the rate would be 9.15%, the bank said. MCLR for two-year loans would be at 9.25% and loans with three-year maturity would carry an MCLR of 9.30%, the bank said.

All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal benchmark of the concerned bank. Actual lending rates are determined by adding the components of spread to the MCLR.

SBI's net profit fell 61.7% to Rs 1115.34 crore on 6.7% rise in total income to Rs 46731.01 crore in Q3 December 2015 over Q3 December 2014.

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Government of India holds 60.18% stake in SBI (as per the shareholding pattern as on 31 March 2016).

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First Published: May 03 2016 | 10:39 AM IST

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