SBI initiates its First Step on Amendment to SBI Act
A bill, proposing to cut the Centre's shareholding in the State Bank of India (SBI) from 55 per cent now to 51 per cent and to permit the bank to raise more capital from the market through preference shares, was introduced in the Lok Sabha on Monday.
State Bank of India has introduced a change, advancing 2% to Rs 2,089, after the Finance Minister introduced the bill to amend State Bank of India (ABI) Act.
The bill added, "While SBI can access capital market by issuing equity shares or bonds, or by both equity shares and bonds, there is no express provision under the SBI Act to enable the bank to issue preference shares and also bonus shares".
The stock registered sluggishness in morning trades, plunging to a low of Rs 2,032. However, it has fetched back a bit of momentum, growing 4% from the day's low, and rallied to a high of Rs 2,114.
The Government currently possess 59.41% stake in the bank as on December 2009. All three listed subsidiaries of the bank, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore have reported gains between 3% and 7% each.
