"Executive Committee of Central Board in its meeting held on September 27 has accorded final approval for buyback of equity shares held by State Bank of India in SBI DFHI for buy back," SBI said in a regulatory filing.
SBI has the largest shareholding of 72.17 per cent in the company, while 22.32 per cent is owned by nationalised banks and the rest of 5.51 per cent by financial institutions/ private banks.
The company is engaged into book building process in primary auctions of government securities.
The company said it also actively participates in the domestic interest rate derivatives and equities/equity futures markets.
SBI stock closed 2.89 per cent down at Rs 250.45 on BSE.