QIP issue to come before March 2014: SBI

Dec 11, 2013, 10.22 PM IST

The bank had earlier this week secured government approval to raise Rs 9,576 crore through Qualified Institutional Placement (QIP).

Tags SBI, QIP, Arundhati Bhattacharya, Delhi Economic Conclave

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The bank had earlier this week secured government approval to raise Rs 9,576 crore through Qualified Institutional Placement (QIP).

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QIP issue to come before March 2014: SBI

The bank had earlier this week secured government approval to raise Rs 9,576 crore through Qualified Institutional Placement (QIP).

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Country's largest lender SBI Wednesday said it will raise Rs 9,576 crore through institutional placement of shares and the issue would come out before March 2014.

"We have got approval from the board as well as the government. The QIP should happen this fiscal. It could happen before March," State Bank of India Chairperson, Arundhati Bhattacharya said on the sidelines of Delhi Economic Conclave.

Also Read: SBI panel says nothing wrong in loan sanctioned by Acharya

The bank had earlier this week secured government approval to raise Rs 9,576 crore through Qualified Institutional Placement (QIP).

The government's holding in the bank will not decline below to 58 per cent pursuant to the QIP. The government at present holds 62.31 per cent in SBI.

The government will infuse Rs 2,000 crore in the SBI this year and towards this it will issue preferential shares worth the same quantum to the government.

In October, the SBI board had approved infusion of Rs 2,000 crore by allotting preferential equity shares to the government.

SBI stock price

On December 11, 2013, State Bank of India closed at Rs 1796.70, down Rs 47.85, or 2.59 percent. The 52-week high of the share was Rs 2550.00 and the 52-week low was Rs 1452.90.

The company's trailing 12-month (TTM) EPS was at Rs 179.98 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 9.98. The latest book value of the company is Rs 1445.60 per share. At current value, the price-to-book value of the company is 1.24.

Citra Rasa