Govt picks up RBI's stake in SBI for 35,531.33 cr

New Delhi, June 25: India's biggest lender State Bank of India (SBI) today said the Government has agreed to pick RBI's 59.7 per cent stake for Rs 35,531.33 crore in cash.

Reserve Bank of India's entire shareholding aggregating 31,43,39,200 shares with a face value of Rs 10 will be transferred to the Central Government on June 29, SBI said in a communique to the BSE.

The Government has promulgated SBI Amendment Ordinance 2007 on June 21 and amended the State Bank of India Act, 1955 for buying RBI's entire shareholding in SBI.

The RBI's proposal for transferring its entire shareholding in the country's largest commercial bank to the government was approved by the Cabinet in its meeting held on February 1 this year.

This decision of the government was formally announced by Finance Minister P Chidambaram in his Budget Speech and a sum of Rs 40,000 crore was provided.

UNI