Bank to secure funds through preferential allotment of shares
State Bank of India (SBI), on Saturday, announced that it would get Rs.3,004 crore as part of the government’s capital infusion plan for the current fiscal.
The fund infusion will enable the bank to support national and international banking operations undertaken through its subsidiaries and associates, SBI said in a notification to the stock exchanges.
“The central board of the bank at its meeting on Saturday has approved the infusion of capital funds into the bank by the Central Government to the tune of Rs.3,004 crore during 2012-13,” it said.
The capital will be infused through the preferential allotment of equity shares to the government. The proposal is subject to necessary regulatory approvals, it said.
Last fiscal, the government had infused Rs.7,900 crore into SBI to increase Tier-I capital of the bank.
Following this, the government holding in the bank rose to 61.58 per cent from 59.4 per cent.
The government has approved infusion of Rs.12,517 crore in around 10 state-owned banks by March. — PTI