Mumbai, Feb. 18 -- The State Bank of India is weighing a plan to take control of its investment-banking joint venture (JV) with Investec India, according to two people familiar with the matter. The move comes as India's largest lender seeks to strengthen its deal-making and distribution capabilities in the midst of a multi-year boom in the country's equity capital markets.

SBI is considering raising its stake to 51% from about 20% after an earlier attempt to raise the stake to 40% was rebuffed by the Reserve Bank of India (RBI) a couple of years ago, the first person cited above said on condition of anonymity.

"The regulator usually wants bank stakes in other businesses to be at 20% or below, or at 51%," this person said. "This is to en...