SBI Share Price Up On Demonetization By PM Modi

SBI share price saw a 3 per cent surge on the NSE today since PSU banks witnessed strong buying over correction. Shares of PSU banks recovered by up to 24% from their intra-day’s low on Nifty and Sensex after the trade.

State Bank of India’s (SBI) two associate banks - State Bank of Travancore and State Bank of Mysore shares recovered over 27% each from their early morning lows. Meanwhile, SBI share price closed trading at Rs.260 on the NSE today.  

SBI, nation’s largest lender, today said that it was gearing up to make available adequate number of Rs.100 notes at all its ATMs and branches within the next 2 days to help minimize the inconvenience to the public after the Indian government last night scrapped Rs.500 and Rs.1,000 banknotes. SBI Group which encompasses all its 5 subsidiaries has 55,000 ATMs and 7,000 CDMs - cash deposit machines. The State Bank of India alone has close to 17,000 branches and caters to tens of millions of customers.

Besides, SBI has more than 3,000 PoS machines, where the customers can withdraw up to a certain amount, SBI managing director Rajneesh Kumar said.

In a largest-ever move to curb black money, PM Narendra Modi last night had announced that Rs.500 and Rs.1,000 banknotes would become illegal tenders from last midnight and hugely curbed cash withdrawals via ATMs and from bank counters.

The first demonetization took place under the British rule in the year 1946 and the first one after the Indian Independence on January 16-17, 1978 when the Morarji government demonetized bank notes of Rs.1,000, 5,000 and 10,000.

All ATMs and banks will be shut today. The news triggered fright and people began queueing up at all the ATMs or CDMs to either withdraw money or to deposit Rs.500 and Rs.1,000 notes.

Kumar added that people didn’t had to panic about the Rs.500 and Rs.1,000 notes as they still can deposit these notes into their account.

He further said that reconfiguration of the ATMs to be able to dispense new Rs.500 note and Rs.2,000 note can’t happen immediately and will take some time. The Rs.500 and Rs.1000 notes account for over 86% of the total Rs 16.42 lac cro value of bank notes in circulation as of March 31, 2016, as per Reserve Bank’s latest annual report.