Shares of the State Bank of India (SBI) have been on a roller coaster ride over the past two years.
SBI share price has gone up close to 29% in the past year but has fallen 6% since the start of the year. The public lender’s shares remain volatile today, even as the bank’s earnings for the March quarter beat street estimates.
Most analysts have remained positive on the stock and some even see the SBI share price going up over ₹750.
Withstanding everything, the stock has run up plenty in the past two years. So, if you invested in State Bank of India shares instead of its FD, here’s what would have happened.
SBI offers a host of services to its customers, including fixed deposits (FDs). The interest rate offered by the bank on a two-year FD is generally around 7%. If an individual had chosen to invest ₹10,000 in an SBI FD two years ago, the investment would have matured to approximately ₹11,449.
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If the same amount had been invested in SBI shares, the story would have been quite different. If you bought shares of SBI on May 19, 2021, when the stock closed at ₹384.40, you would have been able to purchase approximately 26 shares. Today, those 26 shares would be worth approximately ₹15,054, representing a more than 50% return on your initial investment.
Price Action: SBI share price was up 0.18% to trade at ₹ ₹575.25 in the mid-market hours of trading on Friday.
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.
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