SBI fixes issue price at Rs 2,312 for preferential allotment

SBI fixes issue price at Rs 2,312 for preferential allotment New Delhi: State Bank of India on Monday said it has fixed issue price of Rs 2,312.78 a share for preferential allotment to the government to raise Rs 3,004 crore as part of the capital infusion plan for this fiscal.

The infusion will enable the bank to support national and international banking operations through its subsidiaries and associates, SBI said in a BSE filing.

"The executive committee of central board of the bank has fixed issue price at Rs 2,312.78 per share of face value of Rs 10 including a premium of Rs 2,302.78 per share, for the preferential allotment of equity shares to the government of India," it said.

On February 23 the board approved infusion of capital funds in the bank to the tune of Rs 3,004 crore during 2012-13, the filing said.

SBI scrip was trading at Rs 2,223, up 1.21 percent on the BSE.

Last fiscal, the government had infused Rs 7,900 crore in SBI to increase the Tier-I capital of the country's largest bank. Following the infusion in March 2012, the government holding in SBI rose to 61.58 percent from 59.4 percent.

The government approved infusion of Rs 12,517 crore in around 10 state-owned banks by March.

Last fiscal, the government pumped in about Rs 12,000 crore in public sector banks, as against Rs 20,117 crore in 2010-11.

PTI