Mumbai: Country's largest lender State Bank of India on Friday said its executive committee has approved the issuance of 3.65 crore equity shares through preferential allotment to the government, as part of its capital infusion plans.
A meeting of the SBI executive committee today fixed the issue price at Rs 2,191.69 per share. These shares have a face value Rs 10 each being issued at a premium of Rs 2,181.69 per share, the bank said in a BSE filing.
The government has agreed to infuse Rs 7,900 crore into the bank, to shore up its core capital. The government owns 59.4 percent in the bank.
The bank was looking at a capital infusion of over Rs 20,000 crore through a rights issue since last fiscal, but the proposal was shot down by a cash-starved government.
SBI's shares closed today on the BSE at Rs 2,095, up 1.62 percent from the previous close.
First Published: Saturday, March 31, 2012, 00:23