SBI (Subsidiary Banks Laws) Amendment Bill introduced in LS

New Delhi, May 22 (UNI) State Bank of India (Subsidiary Banks Laws) Amendment Bill, 2006, which allows the subsidiary banks to raise resources from the market and increase their authorised capital to Rs 500 crore, was introduced in the Lok Sabha today.

The Bill, introduced by Finance Minister P Chidambaram, allows the subsidiary banks to raise issued capital by preferential allotment or private placement or public issue, and to issue shares in accordance with the guidelines framed by the RBI.

It also allows an increase in the number of elected directors representing shareholders of a subsidiary bank limited to a maximum of three, subject to different percentage of public ownership.

The Bill seeks to amend the State Bank of Saurashtra Act, 1950, the State Bank of Hyderabad Act, 1956, and the State Bank of India (Subsidiary Banks) Act, 1959.

UNI YJ LR BD1535