Buy State Bank of India Ltd at Rs,.2296, T--Rs.2400, SL--Rs.2178
State Bank of India rose 2.18% at Rs 2,307 at 10:10 IST on BSE after the bank's deputy managing director, R. Venkatachalam, denied media reports that the bank was close to offering a bailout loan package to Kingfisher Airlines.
Meanwhile, the BSE Sensex was up 11.72 points, or 0.06%, to 18,133.53.
On BSE, 3.02 lakh shares were traded in the counter as against an average daily volume of 7.30 lakh shares in the past one quarter.
The stock hit a high of Rs 2,321 and a low of Rs 2,255 so far during the day. The stock had hit a 52-week high of Rs 2,959.90 on 25 April 2011 and a 52-week low of Rs 1,576 on 20 December 2011.
The stock had outperformed the market over the past one month until 22 February 2012, rising 16.88% compared with the Sensex's 8.40% rise. The scrip had also outperformed the market in past one quarter, gaining 33.70% as against 12.95% rise in the Sensex.
The large-cap state-run bank has an equity capital of Rs 635 crore. Face value per share is Rs 10.
R. Venkatachalam was quoted by media as saying on Wednesday, 22 February 2012, that the bank has not given further loans to Kingfisher Airlines.
"We have not given any fresh loans to Kingfisher," R. Venkatachalam, a deputy managing director of the bank, who is responsible for managing the Kingfisher loan account, told the media. "All media reports are baseless and untrue, " he added.
The bank is not considering giving any fresh loans to Kingfisher as of now, he said.
Shares of State Bank of India (SBI) slumped 7.91% to Rs 2257.80 on Wednesday, 22 February 2012, after media reported that the bank extended a Rs 1200 crore relief package to cash-strapped Kingfisher Airlines, including working capital of Rs 400 crore, bank guarantee of Rs 500 crore and loan repayment extension worth Rs 250-300 crore.
SBI's net profit rose 15.38% to Rs 3263.04 crore on 20.47% increase in total income to Rs 29787.37 crore in Q3 December 2011 over Q3 December 2010.
Provisions and contingencies jumped 17.35% to Rs 2407.42 crore in Q3 December 2011 over Q3 December 2010. Gross non performing assets (NPAs) increased to 4.61% as on 31 December 2011, from 3.17% as on 31 December 2010. Net NPAs rose to 2.22% from 1.61% during the same period.
SBI is India's largest commercial bank with a network of over 13,000 branches and 5 associate banks. The bank offers a wide range of banking products and services to corporate and retail customers. Government of India held 59.4% stake in SBI (as on 31 December 2011).
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