Country’s largest lender State Bank of India (SBI) on Wednesday approved sub-division of one equity share into ten with an aim to increase liquidity of the scrip.
“The central board of SBI at its meeting has approved to reduce the face value of equity shares of the bank from Rs. 10 per share to Rs. 1 per share and to increase the number of issued shares in proportion thereof,” the bank said in a statement.
The following decision would be reflected in the reduction in face value of equity shares in existing Global Depositary Receipt (GDR) programme, it said.
The decision is subject to regulatory approvals, including from Government of India.
Commenting on the development, SBI chairperson Arundhati Bhattacharya said: “The decision to split stock will enhance broader investor participation, specifically retail participation and increase in demand will enhance P/E Ratio.”
Shares of the bank closed 2.68 per cent down at Rs. 2,487.40 apiece on the BSE.
Earlier this month, Punjab National Bank and ICICI Bank had also announced share split. Both the banks have approved sub-division of one equity share into five.
