Cabinet approves Acquisition of RBI stake in SBI by the Central Government

Government of India Ministry of Finance Department of Economic Affairs (Banking Division) has announced that:

"1. The proposal of Reserve Bank of India for transferring its entire shareholding in State Bank of India to Central Government was approved by the Cabinet in its meeting held on February 01, 2007. This decision of the Government was formally announced by the Finance Minister in his Budget Speech on February 28, 2007, and a sum of Rs 40,000 crore was provided in the Budget for the year 2007-08.

2. The State Bank of India (Amendment) Ordinance, 2007 (No.5 of 2007) amending the State Bank of India Act, 1955 to enable the transfer of Reserve Bank of India's entire shareholding in State Bank of India to Central Government has been promulgated on June 21, 2007. Pursuant to the provisions contained in the said Ordinance, it has been agreed between the Reserve Bank of India and the Central Government that the entire shareholding of Reserve Bank of India aggregating 31,43,39,200 equity shares with a face value of Rs 10/- each be transferred to the Central Government on June 29, 2007 against cash payment of Rs 35,531.33 crore."

The stock closed the day at Rs.1455.80, up by Rs.10.25 or 0.71%. The total traded quantity was 928908 compared to 2 week average of 625492. The stock hit an intraday high of Rs.1479 and low of Rs.1445.

Source : Equity Bulls

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