State Bank of India (SBI) on Thursday received shareholders' approval for raising Rs15,000 crore through a public offer, including a rights issue, to fund business and meet global capital adequacy norms.
The general meeting held today approved "to create, offer, issue and allot, such number of equity shares of Re 1 each, not exceeding Rs15,000 crore or such amount as approved by the Government of India and RBI...," SBI said in a filing to the BSE.
It would be "subject to the condition that the Government's shareholding in equity share capital of the bank does not fall below 52 per cent at any point of time, by way of public issue...," it said.
Public issue, it said, would include follow on public offer or rights issue or private placement including QIP, ADR, GDR or any other mode decided by the board.
Shares of the country's largest lender closed at Rs289.55 per unit, up 2.03 per cent.
The bank requires adequate capital to match the anticipated growth in asset and comply with stipulated level of capital adequacy.
The move comes in the backdrop of the Cabinet permitting banks to lower the government holding from 58 per cent to 52 per cent enabling lenders to raise funds from the market to meet Basel III norms.
Government of India holds 58.60 per cent stake in the bank.
last year, the bank raised Rs8,032 crore by selling shares through the qualified institutional placement route to fund its business growth.
Besides, the Government infused Rs2,000 crore capital in the bank during the last fiscal.
For the current fiscal, the government has earmarked Rs11,200 crore for capital infusion in various public sector banks including SBI. The disbursement may take place during this quarter.
The statement further said that the quantum and mode, number of tranches, price or prices, discount or premium, reservations to employees, customers, existing shareholders will be decided by the board at a later date.