SBI gets shareholders' nod to raise Rs 11,500 crore

State Bank of India has got shareholders' approval for raising up to Rs 11,500 crore (Rs 115 billion) by way of Qualified Institutional Placement or public offer.

"Shareholders have passed special resolution to create offer to issue and allot by way of QIP/FPO or any other mode, as may be approved by the government and Reserve Bank of India, such number of shares of Rs 10 each as decided by the board in their discretion, up to Rs 11,500 crore or such amounts," SBI said in a filing with the Bombay Stock Exchange.

The dilution of the government shareholding will be to the extent of the level approved, it said.

The government's holding in the bank will not decline below 58 per cent pursuant to the QIP.

At present, it holds 62.31

per cent in SBI. Besides, the meeting held yesterday also approved the preferential issue of equity shares of Rs 10 each to the government up to Rs 2,000 crore (Rs 20 billion).

The bank has fixed an issue price of Rs 1,782.74 per share for a preferential stock allotment to the government as part of the capital infusion plan for this fiscal.

The bank will issue 1.12 crore (11.2 million) shares on a preferential basis to the government for a consideration of about Rs 2,000 crore, it said.

The SBI board had approved the preferential allotment in October.

The additional funds will enable the bank to support national and international banking operations undertaken through its subsidiaries and associates. Last fiscal, the government infused Rs 3,004 crore (Rs 30.04 billion) in the bank.