SBI bill for enhancement of its capital introduced in LS

New Delhi, Dec 18 (UNI) Finance Minister P Chidambaram today introduced a bill in the Lok Sabha seeking to provide for enhancement of the capital of the State Bank of India (SBI) by issue of preference shares, to enable it to raise resources from the market by public issue or preferential allotment or private placement.

The State Bank of India (Amendment) Bill, 2006, seeks to increase the authorised capital of SBI to Rs 5000 crore divided into shares of ten rupees each or of such denomination as may be decided by the Central board with the approval of the Reserve Bank Of India and also enable the Centre to increase or reduce the authorised capital in consultation with the RBI.

It seeks to allow reduction of RBI's shareholding from 55 per cent to 51 per cent consisting of the equity shares of the issued capital and to provide for nomination facility in respect of shares held by individual or joint shareholders.

Shipping and Transport Minister T R Baalu later introduced a bill seeking to amend the Central Road Fund (Amendment) BIll, 2006, to allow the Centre to borrow Rs 16,500 crore over a period of four years by creating a separate window under the NABARD and repay the loans taken for the purpose of development of rural roads in any state or union territory.

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