New Delhi: Country's largest lender State Bank of India will seek an approval from its board later this week for issuance of preference share to the government in lieu of Rs 8,800 crore capital infusion and implementing the reforms agenda set by the Centre.

"The central board of the bank at its meeting scheduled to be held on February 9, 2018 will consider for approval of the proposal for raising equity capital by way of preferential allotment of equity shares to the government to the tune of Rs 8,800 crore and for implementation of the Reforms Agenda for Responsive and Responsible PSBs," SBI said in a regulatory filing.

The board of directors will meet on Friday (February 9) to announce the bank's third quarter earnings.

The government in October had announced a mega capital infusion of Rs 2.11 lakh crore in next two years for public sector banks, including bond issues worth Rs 80,000 crore to strengthen them in view of stressed assets on their balance sheet that has resulted in huge accruals of non-performing assets (NPAs).

The unprecedented Rs 2.11-lakh crore capital infusion road map announced by the government for the public sector banks will trigger economic activities, SBI Chairman Rajnish Kumar had said.

Earlier in June this fiscal, the bank had mopped up Rs 15,000 crore through a qualified institutions placement (QIP) which is also done through preference issue of shares to eligible investors.

Apart from boosting its core equity capital, the bank all through the current fiscal year so far has got approvals from its board to raise funds through issuance of bonds, both domestically and internationally.

Earlier on January 17, the Executive Committee of the board of directors of SBI had approved to raise Rs 20,000 crore by issuing long-term bonds in domestic and overseas market in the current and the next financial year to finance infrastructure and affordable housing.

And on January 8, the board approved a long-term fund raising plan of up to USD 2 billion in single or multiple tranches through a public offer or private placement of unsecured notes (bonds) in US dollar or any other convertible currency in 2017-18 and 2018-19.

In December (2017), the bank was given approval to raise additional tier I capital by issuing Basel III compliant debt instrument in US dollar or Indian rupee up to Rs 8,000 crore from local/international market inclusive of rupee denominated masala bonds by the end of this fiscal ending in March.

An approval in July by the board of directors made up for another Rs 2,000 crore by issuing bonds on a private placement basis to overseas or domestic investors, which is a residual amount from the Rs 11,100 crore fund raise during 2016-17 of which it had raised Rs 9,100 crore.

A return on investment came in the form of Rs 8,386 crore by part selling its stake in subsidiary joint venture firm SBI Life through an initial public offer (IPO) during this fiscal.

Stock of SBI closed 2.08 per cent down at Rs 291.50 per unit on the BSE.