State Bank of India to raise upto Rs. 9,576 crore via FPO or share sale

Business

oi-Roshni

By Roshni Agarwal

Published: Monday, December 2, 2013, 12:31 [IST]

According to Reuters report, State Bank of India (SBI), the largest public-sector bank in India, plans to raise a maximum of Rs. 9,576 crore or $1.53 billion via a follow on public offer (FPO) or sale of shares to institutional investors. Additionally, the bank also plans to mobilize funds amounting to Rs. 2000 crore from share sale to government.

Earlier, Arundhati Bhattacharya, Chairperson of State Bank of India, said that the bank shall raise up to Rs 5,000 crore through bonds (debt) by the fiscal end.

An increase in non-performing assets from 2.84 per cent to 2.91 per cent, resulting in lower net profit of Rs 2375 crores in the second quarter of financial year 2013-2014, is propelling the bank to mobilize funds at a rapid pace.

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