SBI gains over 2.5%

SBI is a smart gainer in the PSU bank sector. The stock opened at Rs.1692 and is currently at Rs.1719.90, up over 2.5%. Its intra day high is at Rs.1727.85.

The stock is up on two counts. Firstly, the spurt can be directly linked to the Finance Ministry yesterday stating that it has finalised the Rs 14,000-crore capital infusion plan for PSU banks to augment their capital base and promised another tranche in the fourth quarter of the current fiscal. Secondly, this has brought into focus LIC’s decision to hike stake in SBI – it has raised its stake in the country’s largest bank by 2.86% to 13.26%. A few months ago, it acquired 9.57 lakh shares from open market for Rs 49.15 crore. Before the acquisition, LIC’s stake in the bank was 10.4%. Similarly, LIC has hiked stake in other banks – Yes Bank and ICICI Bank.