SBI board approval for Rs 2k cr capital infusion

SBI board approval for  Rs 2k cr capital infusion

The country’s biggest lender, the State Bank of India (sbi), on Wednesday approved the infusion of capital funds of Rs 2,000 crore in the bank from the government to raise its capital base.

The SBI board at its meeting held on Wednesday decided to go ahead with the funds infusion, which will be done by way of preferential allotment of equity shares in favour of the government, SBI informed BSE on Wednesday. ,

The government had last fiscal infused Rs 3,004 crore into state-owned State Bank of India  via preferential allotment of shares. The state's holding in the bank increased to 62.3 per cent from 61.6 per cent previously.

The government said on October 23 that it would inject Rs 14,000 crore in 20 state-run banks to meet the credit requirements of productive sectors of the economy and maintain the regulatory capital adequacy ratios in public sector banks.

The board of Oriental Bank of Commerce (OBC) has also approved infusion of Rs 150 crore from the government.

"The board... approved the proposal regarding raising of capital by way of preferential allotment of equity shares in favour of government of India amounting to Rs 150 crore," OBC said.

With this, the government's holding in Oriental Bank of Commerce will go up to 59.1 per cent from 58 per cent.

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