Shares of country's largest lender State Bank of India (SBI) rose nearly 4 per cent on Tuesday after the company said the government has approved capital infusion of Rs 7,900 crore in the bank.
After starting the day on a bullish note, the stock gained 3.53 per cent to touch a high of Rs 2,061.05 on the Bombay Stock Exchange (BSE).
On the National Stock Exchange, the stock went up by 3.85 per cent to Rs 2,061.60.
In terms of volume, 6.95 lakh shares of the company were traded on the BSE, while more than 29.75 lakh shares changed hands on the NSE.
The capital infusion will "increase the issued capital by SBI by way of preferential allotment of equity shares to the government to the extent of approximately Rs 7,900 crore including premium," SBI said in a filing with the BSE.
The government conveyed its approval on Tuesday, it said.