Electoral bonds row: SBI shares see major dip after SC rejects plea

The State Bank of India’s shares dipped majorly after the Supreme Court on Monday reprimanded the lender for seeking an extension in the electoral bonds deadline.

The apex court rejected SBI’s plea seeking an extension of the deadline to disclose the data linked to electoral bonds. 

SBI shares saw a dip of nearly 2 per cent soon after the Supreme Court dismissed its plea and ordered the bank to present the data by tomorrow, March 12.  At 3:30 pm, SBI shares stood at ₹773, seeing a dip of ₹15 from the previous close.

The reason for the dip in SBI’s shares was shared by Vice President — Research at SMC Global Securities, Saurabh Jain, saying “SBI share price is falling today due to the drop in sentiments regarding the banking stock.”

“The reason for the drop in sentiments can be attributed to the Supreme Court's rejection of its plea for an extension of time for disclosure of electoral bonds details. Apart from this, sentiments in the Indian stock market are also weak. So, both these factors have pulled down SBI shares,” Jain was quoted as saying in a report by Mint.

SBI's intraday low was recorded at ₹771, which was 2 per cent lower than the previous day. Experts believe that the shares of the central bank dropped not just because of the Supreme Court verdict, but also due to the weak sentiments in the Indian stock market, Mint reported.

The court on Monday ordered the lender to disclose the electoral bond details by March 12 which must include two separate sets of details: the name of the purchaser of electoral bonds and the denomination of the bonds along with the bonds redeemed by the respective political parties.

"Submissions of SBI in the application indicate that information sought is readily available. Thus, the application by SBI seeking an extension of time until June 30 is dismissed. SBI is directed to disclose the details by the close of business hours of March 12, 2024,” the court said.

The Constitution bench headed by Chief Justice D Y Chandrachud, also warned the SBI of contempt of court against it for willfully disobeying its order in the event of non-compliance with the latest directions.

"Though we are not exercising the contempt jurisdiction, but, we place SBI on notice that this court will proceed against it for willful disobedience if it does not comply with the timelines indicated in this order," ordered the bench.