SBI to Fix Issue Price for Rs 2,970 Crore Infusion by March-End

New Delhi: State Bank of India will decide on issue price of equity shares on preferential basis to the government for Rs 2,970 crore capital infusion on March 24.

Also, Bank of Baroda (BOB) will decide upon issue price of shares for capitalisation worth Rs 1,260 crore on March 26.

The general meeting of the shareholders of the bank will be held on March 24 to issue equity shares, SBI said.

"General Meeting of shareholders of the bank will be held on March 24, 2015...to create, offer, issue and allot such number of equity shares of Re 1 each for cash to the tune of up to Rs 2,970 crore on preferential basis to government," SBI said in a filing to the BSE.

The issuance of equity on preferential basis to the government will help SBI meet its tier-I capital requirement under Basel-III norms.

In a separate filing to BSE, BOB said an Extra-ordinary General Meeting (EGM) of shareholders of bank will be held on March 26, to "create, offer, issue and allot up to such number of equity shares of Rs 2 each up to Rs 1,260 crore on preferential basis to government."

Earlier this month, government decided to infuse Rs 6,990 crore in nine public sector banks (PSBs) out of the current year?s budget to strengthen their capital base.

The capital infusion has been done on the basis of their efficiency in performance.

Among others, Punjab National Bank will get Rs 870 crore, Canara Bank Rs 570 crore, Syndicate Bank Rs 460 crore, Allahabad Bank Rs 320 crore, Indian Bank Rs 280 crore, Dena Bank Rs 140 crore and Andhra Bank Rs 120 crore.

In his Budget speech last July, Finance Minister Arun Jaitley had said that to be in line with Basel-III norms there was a need to infuse Rs 2.4 lakh crore as equity by 2018 in PSBs.

Government infused capital of Rs 12,000 crore in public sector banks in 2011-12, Rs 12,517 crore in 2012-13 and Rs 14,000 crore in 2013-14