SBI gets govt nod to raise Rs 9,000cr via QIP route

The State Bank of India (SBI) board meeting took place last week and SBI had asked for the government's permission for a Qualified Institutional Placement (QIP), reports CNBC-TV18's Aakansha Sethi.

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In the board meeting SBI had put forth the proposal that instead of equity infusion only to the tune of about Rs 2,000 crore which would be in line with the current equity infusion plan of the government they should be allowed a QIP in proportion to the last three equity infusions because for the last three equity infusions no QIPs took place.

So the government is onboard for that and hence the SBI QIP is likely to raise almost Rs 9,000 crore, this is what the Banking Secretary said. Coupled with the Rs 2,000 crore that they are going to get from equity infusion, SBI is going to end up getting about Rs 11,000 crore of capital in this fiscal.