RBI to transfer SBI''s 59.7-per cent stake to

New Delhi: The government will buy today Reserve Bank's entire 59.7-per cent stake in SBI, the country's largest bank, for over Rs35,351 crore. According to official sources, it will acquire 31.43 crore equity shares with a face value of Rs10 each for cash.

In view of the buoyant tax collections this month, the government will not need to resortr to market borrowings.

Till 27 June, the government had collected Rs43,576 crore from direct tax collections up from Rs28,241 crore in the same period last fiscal. It had earlier raised Rs5,000 crore outside the scheduled borrowings from the market to part-finance the deal.

SBI shares closed at Rs1,470.35, up Rs23.15 or 1.6 per cent, on the Bombay Stock Exchange yesterday. In comparison, the Centre is buying at a lower price of Rs1,124.7 per share.

In Mumbai, SBI chairman O P Bhatt yesterday said that government equity would be brought down to 51 per cent once necessary transfers of RBI's share in SBI to the government is completed.