Mumbai: The country's largest lender State Bank of India today said 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 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 December 30 to clear both QIP and preferential issues.
SBI's capital adequacy ratio stands at 11.69 per cent, with Tier-I capital of 8.73 per cent under the Basel-II norms.
