The bank said its Board will also consider implementation of reforms agenda for responsive and responsible public sectors banks (PSBs) of the government.
Country's largest lender State Bank of India today said its Board will meet later this week to consider a proposal to raise Rs from the government.
The bank said its Board will also consider implementation of reforms agenda for responsive and responsible public sectors banks (PSBs) of the government.
"The Central Board of the Bank at its meeting scheduled for February 9 will consider the proposal of raising equity capital by way of preferential allotment of equity shares of government of India to the tune of Rs 8,800 crore," State Bank of India (SBI) said in a BSE filing.
The government on October 24 last year had unveiled a Rs 2.11 lakh crore two-year road map for strengthening NPA-hit PSBs, which includes re-capitalisation bonds, budgetary support and equity dilution.
Shares of SBI were trading 2.96 per cent down at Rs 288.90 per scrip on BSE.
Earlier in January, DNA money reported that State Bank of India (SBI) will raise $2 billion under its medium-term note (MTN) programme from international markets outside the US for refinancing its corporate clients. The move follows the Reserve Bank of India's (RBI) nod to overseas branches and subsidiaries of Indian banks to refinance ECBs of high-rated (AAA) corporates as well as Navratna and Maharatna PSUs.
Earlier, rupee loans could not be refinanced with ECBs which gave a clear advantage to foreign banks.
A senior SBI official told DNA Money, "This is an enabling approvals. We have not hit the market as yet. The bank is expected to look at the appropriate time to hit the market."
The central bank has relaxed the regulation provided the outstanding maturity of the original borrowing is not reduced and all-in-cost of fresh ECB is lower than the existing ECB. SBI has an overseas MTN programme of about $10 billion.
However, Indian banks are not looking at aggressive expansions overseas as the growth in the overseas geographies has been muted. In fact, some of the banks including SBI are looking at streamlining its operations.
The last time SBI raised money under MTN was in March 3, 2017, when it mopped up $500 million. This was a three-year loan. It was the second fund raising by the bank under the MTN programme. This was a Regulation (Reg) S bond which was sold through its London branch priced at 0.95% over the Libor. Under the US Securities Act, Reg S bonds are targeted at foreign investors outside the US.
(With inputs from PTI)
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 "SBI Board to meet this week to consider raising Rs 8,800 crore")
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