Monday, August 16, 2010

State Bank plans to issue bonus shares

State Bank plans to issue bonus shares

The leader is in news again. SBI was formed in 1955 under a special act for converting Imperial Bank of India. Majority portion of its Share Capital is with the Government of India. Every time a corporate decision be it for capitalisation or merger with its own subsidiaries like SB of Indore, SB of Saurashtra, etc., the matters are referred to Parliament for discussions and amendments and so on.

However, SBI is in news this week for three reasons. First the amendment to the Act to enable issue of Bonus Shares. It is also planning for issue of Rights Shares by this year end, it is reported. Next, this week SBI increased its deposit and lending rates too. Please refer to all leading news papers / finance pages for details.http://www.thehindubusinessline.com/2010/08/17/stories/2010081753610100.htm Finally, the bank also released its Q1 results with over 25% increase in its performance!

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