Millennium Post
Business

SBI receives Govt’s nod to raise `9,576 crore via QIP this fiscal

The country's largest lender State Bank of India (SBI) on Monday said that it has received government approval to raise Rs 9,576 crore through a qualified institutional placement (QIP) in the ongoing fiscal.

Last month, SBI chairperson Arundhati Bhattacharya had said that the state-run bank had sought the government's approval to raise money through the QIP route.

‘The government has accorded its approval to SBI to raise Rs 9,576 crore of equity during this financial year from the market by way of a QIP issue on condition that government holding shall not come down below 58 per cent,’ SBI informed to the Bombay Stock Exchnage (BSE). Raising of the capital will subject to requisite approvals from the shareholders and the RBI, the bank said.

The government will infuse Rs 2,000 crore in the SBI this year and towards this it will issue preferential shares worth the same quantum to the government. In October, the SBI board had approved infusion of Rs 2,000 crore by allotting preferential equity shares to the government. Last week, the bank had informed the exchanges that it had called a shareholders meeting on 30 December to clear both QIP and preferential issues.
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