The nation's largest lender State Bank of India (SBI) has decided to raise up to Rs 9,576 crore or USD 1.53 billion through a share sale to institutional investors or a follow-on public offer, the bank said in an exchange filing here today.
The bank also plans to raise another Rs 2,000 crore through a share sale to the government on a preferential basis as part of the capital infusion announced by the finance ministry.
The government held 62.31 per cent in the bank at the end of the September. While the government cannot reduce its holding in state-run banks to below 51 per cent, the Manmohan Singh government had decided not to lower its holding to less than 58 per cent in any of the 26 banks.
SBI said the board's decision is subject to approvals from shareholders, the government and the Reserve Bank of India. Accordingly, the bank has decided to hold a shareholders' meeting on December 30.
The placement of shares to qualified institutional investors or the follow-on public offer worth Rs 9,576 crore is subject to both government and RBI nods, the bank said.
Earlier, Chairperson Arundhati Bhattacharya had said SBI would raise the funds, including Rs 5,000 crore, through a bond sale programme before the end of the fiscal.