SBI fixes share issue price at Rs 2,312

Aims to raise Rs 3,004 cr as part of the capital infusion plan for this fiscal

State Bank of India today said it had fixed an issue price of Rs 2,312.78 a share for preferential allotment to the government to raise Rs 3,004 crore as part of the capital infusion plan for the this financial year.

The infusion will enable the bank to support national and international banking operations through its subsidiaries and associates, SBI said in a BSE filing.

On February 23, the board approved infusion of capital funds in the bank to the tune of Rs 3,004 crore during 2012-13, the filing said. The SBI scrip was trading at Rs 2,223, up 1.21 per cent on the BSE.

Last financial year, the government had infused Rs 7,900 crore in SBI to increase the Tier-I capital of the country’s largest bank. Following the infusion in March 2012, the government holding in SBI rose to 61.58 per cent from 59.4 per cent earlier. The government approved infusion of Rs 12,517 crore in around 10 state-owned banks by March. Last financial year, the government pumped in about Rs 12,000 crore in public sector banks, as against Rs 20,117 crore in 2010-11.