SBI's Rs 9,576-cr QIP to come before March 2014

Country's largest lender State Bank of India (SBI) said on Wednesday said it would 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 in New Delhi.

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.