The government on Friday picked up Reserve Bank's entire 59.7 per cent stake in the country's largest lender State Bank of India [Get Quote].

"The entire shareholding of Reserve Bank aggregating 31.43 crore shares with face value of Rs 10 each in SBI was transferred to the Central Government today," SBI informed the Bombay Stock Exchange.

The deal was carried out on the last day of the RBI financial closure and shares of the SBI ended at Rs 1,525.30, up Rs 54.95 or 3.74 per cent, on the BSE.

Earlier, SBI had informed the bourses that the Centre would pick up 31.43 crore equity shares on June 29 for a cash payment of Rs 35,531.33 crore (Rs 355.31 billion).

The government had promulgated SBI Amendment Ordinance 2007 on June 21 to amend State Bank of India Act 1955 for buying RBI's entire shareholding in the bank.

The move to buy RBI's stake is aimed at enabling the central bank to concentrate on its core function of banking regulator.

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

The deal will not have revenue implications for the government since RBI is expected to transfer the surplus to the Centre during the first half of August.

RBI's proposal for transferring its entire shareholding in SBI to the government was approved by the Cabinet in its meeting held on February 1.