The country’s largest public sector lender had subdivided the face value of its equity shares to Re 1 from Rs 10.
State Bank of India has informed the exchanges State Bank of India has informed the exchanges that it has fixed the November 21, 2014 as the record date for determining the eligibility of shareholders entitled to receive 10 equity shares of nominal value of Rs 1 each in lieu of 1 equity share of nominal value of Rs 10 each on account of reduction in face value (Sub-division of equity shares).
Stock split increases liquidity of a share as more retail investors buy the share due to its reduced price per share.
The board of directors of the bank, in a meeting on September 24, decided 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.
Earlier on September 9, ICICI Bank board also approved the sub-division of one equity share having face value of Rs 10 each into five equity shares of face value of Rs.2 each. PNB, on September 22, too granted in-principle approval for spilt of existing equity shares of face value Rs.10 each into five equity shares of face value of Rs.2 each.
Axis Bank also split its shares in July, according to which its shareholders received five equity shares of nominal value of Rs 2 each in lieu of one equity share of nominal value of Rs 10 each.