SBI to Raise Rs 15,000 Crore Through Public Issue

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    New Delhi, Jan 28 (PTI) State Bank of India (SBI) will raise Rs 15,000 crore through a public offer including rights issue to fund business and meet global capital adequacy norms.

    "The committee of the Directors for capital raising has decided to seek government or RBI approval for raising capital up to Rs 15,000 crore by way public issue...," SBI said in a statement.

    SBI to Raise Rs 15,000 Crore Through Public Issue
    State Bank of India: Quotes, News
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    The bank requires adequate capital to match the anticipated growth in asset and comply with stipulated level of capital adequacy, it said.

    The fund, SBI said ,would be raised either through follow on public issue, qualified institutional placement, rights issue, private placement, Global Depository Receipt, American Depository Receipt or combination of these.

    The move comes in the backdrop of the Cabinet permitting banks to lower the government holding from 58 per cent to 52 per cent enabling lenders to raise funds from the market to meet Basel III norms. Government of India holds 58.60 per cent stake in the bank.

    Shares of the country's largest lender were trading at 331.40 per unit, up 0.49 per cent. Last year, the bank raised Rs 8,032 crore by selling shares through the qualified institutional placement route to fund its business growth. Besides, the government infused Rs 2,000 crore capital in the bank during the last fiscal.

    For the current fiscal, the government has earmarked Rs 11,200 crore for capital infusion in various public sector banks including SBI. The disbursement may take place during this quarter.

    The statement further said that the quantum and mode, number of tranches, price or prices, discount or premium, reservations to employees, customers, existing shareholders will be decided by the board at a later date.

    SBI had raised over Rs 16,000 crore through a rights issue in 2008. In the last SBI rights issue, the government contribution was in the form of bonds to the bank instead of cash.

    PTI

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