State Bank of India (SBI), the largest public sector lender, said Wednesday the committee of directors for capital raising approved allotment of 100.48 million equity shares to Government of India on preferential basis. The bank will raise Rs 29.70 billion at an issue price of Rs 295.59 a share.

Recent the bank received approval to divest 10% stake in the SBI Life Insurance. It has also decided to reduce stake in SBI General Insurance from 76% to 51%.

Shares of the bank gained Rs 6.45, or 2.42%, to settle at Rs 273.45. The total volume of shares traded was 1,182,971 at the BSE (Wednesday).