SBI shareholders approve Rs 7,900 cr capital infusion

Country's largest lender State Bank of India (SBI) today said its shareholders have approved Rs 7,900 crore capital infusion by the government.

The shareholders of the bank at the general meeting on March 19, 2012, have passed a special resolution approving preferential allotment of equity shares to the Government for a consideration of Rs 7,900 crore, SBI said in a filing to the BSE.

SBI would allot over 3.60 crore shares at an issue price of Rs 2,191.69 a share to the government, it added.

In January, the government had approved capital infusion of Rs 7,900 crore into SBI to help the lender increase its business activities. The capital infusion by the government will raise the Tier-I (equity) capital of the bank to about 8 per cent.

At present, Government holds a 59.4 per cent stake in SBI and post allotment, its stake would go up by 2-2.5 per cent. Shares of SBI today closed at Rs 2,184.15, up 1.13 per cent on the BSE.

Source: Financial Express