New Delhi: State Bank of India on Tuesday said it proposes to sell 3.89% stake in the National Stock Exchange of lndia Ltd (NSE) as part of capital raising exercise.

Banks, including SBI, have decided to exit non-core business and focus on their core activity. The appropriate authority has accorded approval to explore and initiate the process of divestment up to 3.89% of stake of SBI in NSE through secondary sale, SBI said in a filing to stock exchanges.

The stake sale in the bourse will help the bank to raise capital that can be used for expanding its core activity.

Currently SBI holds 5.19% stake in NSE.

In 2016, SBI sold 5% stake in NSE to Mauritius-based Veracity Investments for 911 crore, valuing the exchange at over 18,200 crore. Post this transaction, SBI holds 5.19% stake while its subsidiary, SBI Capital, holds 4.33% stake in NSE.