State Bank of India raises $1.2 billion via share sale - sources

MUMBAI (Reuters) - State Bank of India , the country's biggest lender, on Wednesday raised $1.2 billion through a share sale, less than its target of $1.5 billion, three sources with direct knowledge of the deal said.

The state-run bank, which accounts for a quarter of the country's loans and deposits, sold 49.64 million shares to institutional investors at 1,565 rupees each, said the sources, declining to be named before an official announcement.

SBI had launched the share sale on Tuesday with a price band of 1,565-1,596 rupees a share, a discount of up to 2 percent.

(Reporting by Sumeet Chatterjee; Editing by Anupama Dwivedi)