Centre to Make Fund Infusion of Rs 1,894 Into SBI
By MEHER ONISA : 20-Jan-2017
NEW DELHI: The Central government is in the process of infusing Rs 1,894 crore of the principal capital into State Bank of India. SBI the country’s largest lender is entitled to take the regulatory approvals with this regards.
The government had made the announcement on July 19, 2016 describing about the release of 75 per cent of the capital that would be equivalent to Rs 7,575 crore approximately.
It has consented to escalate the paid up capital with the allotment of equity shares.
SBI has also obtained the approval from its majority shareholders for rising up the funds to Rs 5,681 crore and to deploy the same for the issuance of shares by the central government.
Government had contributed Rs 22,915 crore to 13 PSU banks including State Bank of India, Indian Over Seas Bank, and Punjab National Bank for enrichment of their operations.
The remaining capital amount is destined to be released later after observing the asset performance and growth of the shares.