State Bank of India, an Indian prominent bank is all set to raise a lump sum of Rs 5681 crore by the issuance of preferential shares to Central government, its majority share holder.

Shares of SBI were trading 0.19 per cent lower at Rs 261.20 on the BSE

This preferential shares allotment will help the bank to meet global risk norms, Basel III, which will kick in from March 2019.

“The Committee of Directors for Capital Raising of the Bank…has accorded its approval to fix the issue price at Rs 269.59 per share of face value of Re 1 each, including a premium of Rs 268.59 per share and accordingly, to issue 21,07,27,400 equity shares…on preferential basis to Government of India, for a consideration of Rs 5,680.99 crore,” SBI said in a BSE filing.

Earlier this month, SBI stated that it would also take fresh approval to raise up to Rs 15,000 crore through diverse means, including public offer and overseas issuance of shares.