SBI share price: New two-month high! Check rationale behind stock soaring

The shares of the largest lender of India, State Bank of India has jumped over six per cent on the BSE intraday during Monday’s trade, touching its new two-month high of Rs 385 apiece on the back of heavy volumes. The current share price is also its day’s high level.  

The state-owned banking heavyweight’s shares were trading at their highest level since March 16, 2021, touching Rs 377.7 per share intraday. On February 18, SBI had hit a 52-week high of Rs 426 apiece. 

At the close, SBI was the second-most gainer among the Nifty 50 stocks. A combined 43.11 million equity shares were changing hands on both NSE and BSE. Both the benchmark indices Sensex and Nifty jumped over one and a half per cent during today’s trade. 

On May 14, 2021, SBI informed exchanges that the meeting of the board of directors of the company is scheduled on Friday, May 21, 2021, inter alia, to consider and approve approval of audited financial results for year ended March 31, 2021, and dividend, if any. 

It should be after a gap of three years that the shareholders would get the dividend If the SBI board declared any dividend for the financial year 2020-21 (FY21). SBI had declared a dividend of Rs 2.60 per share earlier in May 2017, the BSE data shows. 

Analysts expect frontline private banks/SBI to be comfortably placed in terms of existing Covid provisions, portfolio mix and capital buffers to absorb the potential rise in slippages. The brokerage estimate operating metric for public sector banks (PSBs) is to improve led by an improving the overall environment.  

The banking heavyweights helped the benchmark indices to grow with Sensex surging over 800 points and Nifty ending above 14900 levels. IndusInd Bank, ICICI Bank, HDFC Bank, and Axis Bank jumped by 7.5 per cent, 4.45 per cent, 3.76 per cent,  and 3.45 per cent respectively.