By Ashutosh Joshi
MUMBAI--State Bank of India (500112.BY) on Saturday said its board has approved raising up to 30.04 billion rupees ($558.3 million), via preferential allotment of shares to the Indian government.
Earlier this month, the government approved a proposal to inject up to INR122 billion ($2.27 billion) of capital into several state-run banks.
The government's decision is aimed at helping the state-run banks raise funds necessary to boost lending and meet higher capital requirements under the Basel-III rules that are being implemented in phases.
State Bank of India, also India's biggest lender by assets, said the fundraising will also enable it to support national and international banking operations of its units and it is seeking necessary approvals from the central bank and the government for increasing its capital size.
The funds will be injected this fiscal year that ends March 31, 2013.
The Indian government currently owns 61.6% of the bank.
Write to Ashutosh Joshi at firstname.lastname@example.org
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