State Bank of India rose 4.33% to Rs 312.15 at 15:10 IST on BSE after the bank said it cut interest rate on savings bank accounts to 3.5% from 4% on balance of Rs 1 crore and below.
The announcement was made during trading hours today, 31 July 2017.Meanwhile, the S&P BSE Sensex was up 215.67 points, or 0.67% to 32,525.55.
On the BSE, 30.78 lakh shares were traded in the counter so far, compared with average daily volumes of 12.97 lakh shares in the past one quarter. The stock had hit a high of Rs 313.30 and a low of Rs 298.10 so far during the day. The stock hit a 52-week high of Rs 315 on 19 May 2017. The stock hit a 52-week low of Rs 223.20 on 4 August 2016.
The stock had outperformed the market over the past one month till 28 July 2017, rising 9.78% compared with 4.71% rise in the Sensex. The scrip had underperformed the market in past one quarter, rising 3.37% as against Sensex's 7.99% rise. The scrip had outperformed the market in past one year, rising 30.63% as against Sensex's 15.18% rise.
The large-cap state-run bank has equity capital of Rs 863.21 crore. Face value per share is Re 1.
State Bank of India (SBI) said it is introducing 2 tier saving bank interest rate with effect from 31 July 2017. While balance above Rs 1 crore will continue to earn interest rate at 4% per annum, interest rate at 3.5% per annum shall be offered on balances of Rs 1 crore and below, SBI said in a press release.
The decline in the rate of inflation and high real interest rates are the primary considerations warranting a revision in the rate of interest on saving bank deposits, it added.
The revision in saving bank rate would enable the bank to maintain the MCLR (marginal cost based lending rates) at existing rates, benefiting a large segment of retail borrowers in Small and medium-sized enterprises (SME), agriculture and affordable housing segments, it added.
SBI had cut the MCLR by 90 basis points effective 1 January 2017, on the strength of large inflows in saving and current accounts during the demonetisation period in the month of November and December 2016. There has been significant outflow of Current Account, Savings Account (CASA) deposits since then, SBI said.
State Bank of India's net profit surged 122.7% to Rs 2814.82 crore on 7.8% growth in total income to Rs 57720.07 crore in Q4 March 2017 over Q4 March 2016.
Government of India held 57.07% stake in State Bank of India (as on 30 June 2017).
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