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Preference issue of SBI at a premium

New Delhi, Feb. 25 (PTI): The State Bank of India has 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 this fiscal. The price is a premium of 4 per cent over the SBI closing price of Rs 2,220.85 on Monday.

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

“The executive committee of the central board of the bank has fixed an issue price at Rs 2,312.78 per share of face value of Rs 10, including a premium of Rs 2,302.78 per share, for the preferential allotment of equity shares to the government of India,” it said.

On February 23, the board approved the 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 Bombay Stock Exchange.

Last fiscal, the government had infused Rs 7,900 crore in the SBI to increase the Tier-I capital of the country’s largest bank. Following the infusion in March 2012, the government holding in the SBI rose to 61.58 per cent from 59.4 per cent.

The government approved an infusion of Rs 12,517 crore in around 10 state-owned banks by March. Last fiscal, the government pumped in about Rs 12,000 crore in public sector banks against Rs 20,117 crore in 2010-11.

Swiss accounts

Flooded with requests for bank account details from India, Switzerland today made it clear that it will not entertain any banking and tax-related requests that are based on information acquired illegally.

This comes in the backdrop of requests from countries, including India, which are in possession of account details of Swiss bank customers that were allegedly stolen or gathered through illegal means and passed on to governments.

Switzerland said requests would not be considered if they had been made for the purpose of “fishing expeditions”.

 
 
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