SBI jumps 2%; Moody's assigns Baa3 rating on proposed $10 billion bonds

NEW DELHI: Shares of SBI jumped 2 per cent in Thursday’s trade after global rating agency Moody's Investors Service assigned an investment grade rating to the largest domestic bank’s proposed $10 billion medium-term note programme.

Moody’s assigned a rating of Baa3, which is the lowest level in investment grade, but is same as India's sovereign rating, adding that the outlook on the ratings is positive.

The bank is looking to hike its stake in arm SBI Card to 74 per cent by June end.

The bank’s Chairman Arundhati Bhattacharya at the launch of SBI Card Unnati said that "The stake will be increased by first quarter of next financial year...there are few regulatory issue that is being sorted out."

Besides the bank, which is going to kick start merger process of five associates and Bharatiya Mahila Bank (BMB) from April 1, is expecting the integration process to be completed within three months.

At 11.15 am, the stock was trading 1.3 per cent higher at Rs 291.50 on BSE. The stock had hit a high of Rs 293.50 (up 2 per cent) in trade earlier.