The Union Cabinet on Thursday cleared the State Bank of India (Amendment) Bill for introduction in the current session of Parliament. Among other things, the Bill seeks to bring down the government’s holding in State Bank of India (SBI) from the current 59.4 per cent to 51 per cent on a par with other public sector banks.

The government had in 2006 presented to Parliament a Bill to permit a reduction in its shareholding in SBI to up to 51 per cent, but it lapsed in 2009.

The Bill also provides for increasing SBI’s authorised capital from 20 crore to `5,000 crore, raising capital by preferential allotment or by private placement, issuing bonus shares, allowing reduction of government’s shareholding from 55 per cent to 51 per cent and restricting the voting rights of those holding preference shares.