The Hindu Business Line : SBM share demat almost done

Speaking to journalists here on Thursday, SBM’s Managing Director, Mr P.P. Pattanayak said, “The Securities Exchange Board of India has already cleared the proposal and we are awaiting a formal approval.” But bank officials indicated that SBM had already completed its tie-up with the National Securities Depository Ltd and with the Central Depository Services Ltd for making the dematerialisation operational.

Once the dematerialisation is completed, SBM intends to take up the stock split proposal. SBM’s equity currently has a face value of Rs 100 each. The stock split intended to break the shares into scrips with par value of Rs 10 each. Currently about 8 per cent of the SBM’s stocks are publicly held. Mr Pattanayak said that the proposals have been cleared by the Reserve Bank of India. However, a formal ratification from the parent, State Bank of India, was yet to be received.

The stock split, though, would not result in the bank tapping the equity market for resources.

“We are already comfortable with Basel II CAR (capital to risk weighted asset ratio) of 11.73 per cent,” he said. SBM has a paid up equity of Rs 36 crore and a net worth of Rs 1,341.81 crore, as at the end of March this year.

Net up 28%

The bank reported a net profit of Rs 318.85 crore for the financial year 2007-08, 28 per cent up over the previous financial year. SBM’s profits would have been higher, Mr Pattanayak said, but for the depreciation knock it took on its investment portfolio.

More Stories on : Financial Performance | Public Sector Banks | Stocks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Margdarsi MD to get Yudhvir award

Why sub-prime is not a crisis in India

HDFC Bank net rises 37% on higher income

SBM share demat almost done

Central Bank net falls 15% on high cost of deposits

Strong retail growth lifts SBT net up 18%

Oriental cover for Tata project

Karnataka Bank board meets

Banks asked to follow legal procedures for taking possession of hypothecated goods

RBI to consider controls on working capital credit by banks