India, Aug. 31 -- State Bank of India (SBI) and its subsidiary SBI Capital Markets Ltd together plan to dilute up to 1 per cent stake in the National Stock Exchange (NSE) through the exchange's proposed Rs 30,000-crore initial public offering (IPO). The bank is participating in the NSE IPO and will dilute a 0.65 per cent stake in the exchange, SBI Chairman CS Setty said in an interview.

"We are participating in that divestment. We propose to divest 0.65 per cent and 0.35 per cent by SBI Capital Markets because both of us hold the stake. So together, about 1 percent as a SBI group... it could be less depending on any other shareholders joining," he said.

SBI currently holds a 3.23 percent stake in the NSE, while SBI Capital Markets owns ...