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Govt to infuse Rs 5,393 cr in SBI, IOB, UBI

Govt to infuse Rs 5,393 cr in SBI, IOB, UBI

Country’s largest lender SBI on Tuesday said it will issue equity shares on preferential basis to the government for capital infusion of Rs 5,393 crore.

Pursuant to in-principle approval from government, the central board of the bank today decided to offer and issue shares to the government, SBI said in a BSE filing. “…has decided to create, offer and issue equity shares… by way of preferential issue to the government, not exceeding Rs 5,393 crore,” it added.

The bank has also sought approval from government and RBI to increase the issued capital by raising additional equity share capital up to Rs 5,393 crore to the government, the filing said.

Earlier this month, the government had decided to infuse a total of Rs 20,088 crore in 13 public sector banks, including SBI, PNB , IDBI , Bank of Baroda , Canara Bank , Indian Overseas Bank and Union Bank of India .

In separate filings on BSE, Indian Overseas Bank and Union Bank of India also informed about capital infusion from the government in lieu of preferential allotment of equity shares.

Indian Overseas Bank said its Committee of Directors approved the issue price for allotment of equity shares under preferential issue to government at Rs 41.37 per equity share (including premium of Rs 31.37).

It will allot 48,56,17,597 shares to the government, aggregating to Rs 2,009 crore, it said in the filing. While, Union Bank of India said it will hold an extraordinary general meeting on September 18 to issue equity shares through preferential allotment to government. “… to create, offer, issue and allot up to 5,18,01,045 equity shares for cash at an issue price of Rs 208.49 and aggregating up to Rs 1,080 crore,” the bank said in the filing.

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