The shares of government-owned State Bank of India hit a 52-week high at Rs 270 during trading on Wednesday. The spike came following reports that it had raised Rs 2,100 crore through the issue of perpetual bonds (bonds with no maturity date) to Yes Bank, according to Business Standard. The public bank’s stock rose 2.74% to end the day at Rs 266.55.
The company has outperformed the Bombay Stock Exchange Sensex in the past quarter, gaining 30.34% to the index’s 8.22%. The bonds have been issued to Yes Bank at an interest rate of 9% per annum, according to the Economic Times.
This comes two days after SBI said that it was keen to initiate its merger with five associate banks and the Bharatiya Mahila Bank Limited by the end of October. If the merger goes through, the bank will become the 45th biggest lender in the world, with an asset base of Rs 37 lakh crore. The Government of India currently holds a 60.18% stake in the bank.
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