SBI gets shareholders nod to raise Rs 15,000 crore

Mumbai: Country's largest lender SBI Friday said its has got shareholders' approval to raise up to Rs 15,000 crore by public issue or overseas issuance of shares.

The bank had convened a general meeting today to obtain shareholders' approval to raise the said amount.

Earlier in January, SBI had informed about its plans to raise this sum of Rs 15,000 crore by March 2017.

"The General Meeting was convened to obtain the shareholders' approval, to create, offer, issue and allot such number of equity shares of Re 1 each, not exceeding Rs 15,000 crore or such amount as may be approved by the Government and the RBI", it said in a BSE filing.

State Bank Of India said the issue will be subject to the condition that the Government shareholding in the bank's equity share capital does not fall below 52 percent at any point of time.

The money can be raised by either of the ways including public issue, rights issue or private placement, such as qualified institutional placement (QIP) or Global Depository Receipt or American Depository Receipt or any another mode or a combination, as may be decided by the Board, it said.

The fund to be raised will help the bank to meet global risk norms under Basel III, which the banks needs to be fully compliant with by March 2019.

SBI shares closed 2.86 percent higher at Rs 156.25 a piece on BSE today.