SBI gains 5% on strong earnings; investors richer by Rs 6K cr
Shares of State Bank of India on Friday closed with 5.1 percent gain after the state-run lender posted strong numbers for 2011-12 financial year.
Mumbai: Shares of State Bank of India on Friday closed with 5.1 percent gain after the state-run lender posted strong numbers for 2011-12 financial year.
At the BSE, the stock gained 5.08 percent to close at Rs 1,942. During the day, the stock gained nearly 6 percent to Rs 1,957.
Similarly on the NSE, the scrip that had opened on a weak note pared all its initial losses and settled 5.82 percent higher at Rs 1,955.90 on the NSE.
In the process, the market value of the company surged Rs 6,301 crore to Rs 1,30,316 crore -- making SBI the seventh most-valued company on the Indian bourses.
On the volume front, 21.12 lakh shares of the company were traded on the BSE, while over 88 lakh shares changed hands on the NSE.
"SBI shares gained on the back of strong quarterly results. Even though it looks like a phenomenal growth in its net level this quarter it is not justified to compare net profit year-on-year basis," said Sharmila Joshi, Head Equity, Fairwealth Securities.
SBI today posted net profit of Rs 4,050.27 crore in the fourth quarter ended March 2012, against just Rs 20.88 crore recorded in fourth quarter of previous fiscal.
Its profits had taken a big hit in Q4 of 2010-11 on account of higher provisioning for bad loans and increased tax outgo.
The SBI board has proposed a dividend of Rs 35 per share for 2011-12, i.E. 350 percent dividend on shares of face value of Rs 10.
"Sensex heavyweight SBI came out with its Q4 FY12 results and its strong and better than expected financials enabled the index to further gain some ground and pare its losses," Rakesh Goyal VP Bonanza Portfolio said.
Helped by the rally in the heavyweight stock, the BSE benchmark Sensex ended at 16,152.75, up 82.27 points.