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Mumbai: State Bank of India (SBI), the country’s largest lender, hired Citigroup Inc., Deutsche Bank AG and HSBC Holdings Plc. to arrange a 9,576 crore ($1.5 billion) share sale to bolster its balance sheet, three people with knowledge of the matter said.

JPMorgan Chase and Co., Bank of America Corp. and UBS AG, were also hired to manage the share sale, the people said, asking not to be identified before an official announcement. The bank will sell the shares to institutional investors in the first quarter, the people said.

The government-run lender needs to raise more than 1.2 trillion by March 2018 to comply with higher capital requirements under the Basel III rules, Diwakar Gupta, then the company’s chief financial officer, said in September 2012. SBI had a capital adequacy ratio of 12.09% at 30 September, according to exchange filings.

It will also sell 2,000 crore of shares to the Indian government, which currently owns a 62.3% stake, at 1,782.74 apiece, according to an exchange filing on Thursday. The bank spokesman M.R. Rekhi did not immediately comment.

The government approved the capital raising on the condition its ownership not fall below 58%, according to the filing. BLOOMBERG

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