Meanwhile, the BSE Sensex was up 209.53 points, or 1.25%, to 17,070.94, as a retreat in oil prices eased worries about inflation and after news of a takeover deal in the technology sector helped drive Wall Street higher on Monday, 12 May 2008.
On BSE, 1.57 lakh shares were traded in the counter. The scrip had an average daily volume of 4.09 lakh shares in the past one quarter.
The stock hit a high of Rs 1,690.90 and a low of Rs 1,651 so far during the day. The stock had a 52-week high of Rs 2,396.54 on 14 January 2008 and the stock hit a 52-week low of Rs 1,105.33 on 14 May 2007.
India’s largest commercial bank had underperformed the market over the past one month till 12 May 2008, declining 0.27% compared to the Sensex’s return of 6.66%. It had also underperformed the market in the past one quarter, declining 19.15% compared to Sensex’s return of 1.52%.
The bank’s current equity is Rs 631.47 crore. Face value per share is Rs 10.
The current price of Rs 1,675.15 discounts its Q4 March 2008 annualised EPS of Rs 119.29, by a PE multiple of 14.04.
The two firms will finalise an agreement and apply for regulatory approvals. State Bank of India (SBI) will hold 74% in the venture, with Insurance Australia Group (IAG) holding the remaining 26%, the maximum allowed under Indian law by a foreign firm.
State Bank of India’s net profit rose 26.1% to Rs 1,883.25 crore on 26.7% rise in operating income to Rs 16,393.93 crore in Q4 March 2008 over Q4 March 2007.