SBI plans to raise Rs 5,681 crore from preferential issue to government

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New Delhi | November 19, 2016 9:15 PM

State Bank of India today said it proposes to raise Rs 5,681 crore by issuance of preferential shares to the central government, its majority shareholder.

The bank has called a general meeting of shareholders on December 20 for taking approval for issuance of preference shares, SBI said in a regulatory filing to stock exchanges. (Reuters file photo)The bank has called a general meeting of shareholders on December 20 for taking approval for issuance of preference shares, SBI said in a regulatory filing to stock exchanges. (Reuters file photo)

State Bank of India today said it proposes to raise Rs 5,681 crore by issuance of preferential shares to the central government, its majority shareholder.

The bank has called a general meeting of shareholders on December 20 for taking approval for issuance of preference shares, SBI said in a regulatory filing to stock exchanges.

The board will decide on number of shares of Re 1 each for cash at such price to be determined by the board aggregating to the tune of up to Rs 5,681 crore on preferential basis to the Government of India, it said.

Besides, the bank will take fresh approval to raise up to Rs 15,000 crore from various means, including public offer and overseas issuance of shares.

The funds raised will help the bank meet global risk norms, Basel III, which will kick in from March 2019.

“Since the shareholders’ approval for raising of capital up to Rs 15,000 crore by way of public issue/QIP/GDR or a combination of both or any other mode will expire on February 25, we seek a fresh shareholders’ approval for the proposed capital raising of up to Rs 15,000 crore by way of public issue/QIP/GDR or a combination of both or any other mode,” it said.

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