SBI to Issue Shares Worth Rs 2,970 Crore to Government

Mumbai: State Bank of India (SBI) today said its board has decided to issue equity shares worth Rs 2,970 crore to the government on preferential basis.

The decision came after the government last week said it will infuse Rs 2,970 crore into the country's largest lender under its Rs 11,200 crore capital infusion plan for public sector banks announced in the Budget for 2014-15.

"The board has decided to create, offer and issue equity shares of Rs 1 each, ranking pari-passu with the existing equity shares of the bank in all respect including payment of dividend, by way of preferential issue to the government, subject to the regulatory approvals," the bank said in a filing to the stock exchanges.

The board has also decided to seek approval of the government and Reserve Bank to increase the issued capital by raising additional equity share capital up to Rs 2,970 crore by way of the preferential issue.

In the third quarter ended December 31, SBI's net profit jumped 30 per cent to Rs 2,910 crore from Rs 2,234 crore in the year-ago period.

Gross non-performing assets improved to 4.90 per cent from 5.73 per cent, while net NPAs stood at 2.80 per cent as against 3.24 per cent.