SBI Share Price Fluctuating Since Morning

Intraday on Wednesday, SBI share price dipped 0.06 per cent at Rs. 254.40. The stock opened at Rs. 256.10 against its previous closing at Rs. 254.55.

State Bank of India (SBI), the country's largest public lender  has been given shareholders' approval for a preferential issue of equity shares to the government for up to Rs 5,681 crore. The bank has also got approval to raise up to Rs 15,000 crore via public or private placement. The issue price has been settled at Rs 269.59 per share, as per the information given by the bank.  Post the issue of fresh equity of Rs 5,681 crore, the government’s shareholding will increase to 61.23 per cent of the post issue share capital as against current holding of 60.18 per cent.

SBI’s ventures

Furthermore, SBI's arm has planned to come out with credit cards for anyone who has Rs 25,000 fixed deposit in any bank. The card will not have any charges and will be available without any proof of income or a credit history.  The bank's subsidiary, SBI Cards, also plans to issue credit cards to students of top 100 educational institutions in India without any income proof. The company became the second largest card issuer after HDFC Bank after it overtook ICICI Bank. It is looking to move forward with new products for the masses as parent SBI plans to add five lakh new swipe machines.  The cost of the card will be kept low as issuance will be against eKYC. Primarily, this will be only for SBI customers but in future the lien can be on any bank's FD. The credit card against FD will be launched in January while the student card will be launched in December itself.

SBI Cards

It is the joint venture between SBI and GE Capital, is in the process of acquiring new private equity partners with GE deciding to exit. Thus, SBI has turned more aggressive on the card business.

The promotion of debit cards by the government would actually push up awareness of credit cards. It is a bit like automobiles where buyers start with base level cars and move to mid-segment. In the same manner, if there are more debit card users, they will be drawn to the advantages of credit card. The other advantage in getting first-time users into credit cards is that the bank will be able to get a credit history, making it possible to extend personal loans in future.

At 9.45 AM, the stock rolled above 0.75 per cent and is trading at Rs. 256.45.