SBI's Ten-for-One Stock Split Effective, Shares Gain

The stock split in State Bank of India came into effect on Thursday. India's biggest lender had last month approved a 10-for-one stock split. As a result, SBI reduced the face value of each equity share to Rs 1 from Rs 10 effective today. (Track stock)

Shares in SBI traded with nearly 2 per cent gains at Rs 296.45 as of 11.55 a.m. and outperformed the Bank Nifty, which traded flat. SBI shares have witnessed good traction since Friday, when the lender announced its Q2 results. (Read the full story here)

Companies typically split shares to make those attractive for retail investors. According to Investopedia, stock splits by blue chip companies are a great way for the average investor to accumulate an increasing number of shares in these companies.

Other lenders who have approved stock splits include state-run Punjab National Bank and top private sector lender ICICI Bank.

SBI notified that the date for the purpose of determining the eligibility of shareholders (record date) has been fixed as November 21. With respect to futures and options, the market lot would be revised to 1250 with effect from November 20, brokerage IIFL said.