SBI Central Board approves Rights Issue

Thebullishtrends: State Bank of India shares are trading at Rs.2455(+0.73%) State Bank of India (SBI) has informed that the Central Board of the Bank at its meeting held on January 14, 2008, has decided as under:1. To increase the Issued Capital of Bank from Rs 526.30 crore to Rs 650.00 crore, in terms of Sec. 5 (2) of the SBI Act;2. To raise an aggregate amount of Rs 16,736.31 crore (including premium) by way of Rights Issue offer to Government of India and to other eligible existing shareholders including GDR holders;3. To issue shares to employees of the Bank under Employees Stock Purchase Scheme;4. Ratio for Rights Issue: one share for every five shares held by the eligible shareholders as on the Record Date;5. Price for Rights Issue: Rs 1590 per share (i.e. face value of Rs 10 each and a premium of Rs 1580 per share).