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SBI drops on deciding to issue bond under reverse enquiry

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Capital Market
Last Updated : Dec 08 2014 | 9:38 PM IST

State Bank of India declined 0.19% to Rs 317.15 at 10:40 IST on BSE after the bank said it has decided to issue bond under reverse enquiry up to $300 million.

The bank made the announcement after trading hours on Friday, 5 December 2014.

Meanwhile, the BSE Sensex was down 70.98 points, or 0.25%, to 28,387.12.

On BSE, so far 2.03 lakh shares were traded in the counter, compared with an average volume of 6.95 lakh shares in the past one quarter.

The stock hit a high of Rs 319.85 and a low of Rs 316.20 so far during the day. The stock hit a 52-week high of Rs 327.10 on 1 December 2014. The stock hit a 52-week low of Rs 145.60 on 14 February 2014.

The stock had outperformed the market over the past one month till 5 December 2014, rising 14.17% compared with 1.94% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 26.28% as against Sensex's 5.3% rise.

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The large-cap public sector bank has an equity capital of Rs 746.57 crore. Face value per share is Re 1.

State Bank of India (SBI) said it has decided to issue bond under reverse enquiry up to $300 million for 3 year/5 year/10 year at T+140 bps, T+160 bps, T+185 bps respectively, through issuance of senior unsecured fixed rate notes. According, the bank has finalized the pricing of $100 million 10 year senior unsecured fixed rate note at a fixed pricing of T+175 with a fixed yield of 4.045. The bonds will carry an interest rate of 3.95% per annum, that will be paid semi-annually.

SBI's consolidated net profit rose 31% to Rs 4023.84 crore on 15% rise in total income to Rs 61098.67 crore in Q2 September 2014 over Q2 September 2013.

The Government of India holds 58.6% stake in the bank as at 30 September 2014.

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First Published: Dec 08 2014 | 10:23 AM IST

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