SBI to allot shares to govt on preferential basis for capital infusion of Rs5,681 crore

Mumbai: Country’s largest lender State Bank of India on Saturday said it will issue equity shares on preferential basis to the government for capital infusion of Rs5,681 crore.

Pursuant to the in-principle approval from government, the central board of directors of the bank on Saturday decided to offer and issue shares to the government, SBI said in a BSE filing.

“...to create, offer and issue equity shares... by way of preferential issue to the government, not exceeding Rs5,681 crore, subject to the approval of the government and RBI,” it added.

The bank has also sought approval from government and the Reserve Bank of India (RBI) to increase the issued capital by raising additional equity share capital up to Rs5,681 crore by way of preferential issue to the government, the filing said.

State Bank of India