SBI to increase Rs 5,681 cr from preferential issue to govt

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NEW DELHI: The preferential shares of State Bank of India will increase by Rs 5,681 crore next year.

"The Committee of Directors for Capital Raising of the Bank…has accorded its approval to fix the issue price at Rs 269.59 per share of face value of Re 1 each, including a premium of Rs 268.59 per share and accordingly, to issue 21,07,27,400 equity shares…on preferential basis to Government of India, for a consideration of Rs 5,680.99 crore," SBI said.

SBI affirmed earlier that it would also take fresh approval to elevate up to Rs 15,000 crore through various means including public offer and overseas issuance of shares.

From 2019, The increased fund will help the bank meet global risk norms, Basel III.

On BSE, the shares of SBI were trading 0.19 per cent lesser at Rs 261.20