SBI To Raise Rs 15,000 Crore Through Public Issue


NEW DELHI: State Bank of India will raise 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 15,000 crore by way public issue," SBI said in a statement.

The bank said it requires adequate capital to match the anticipated growth in asset and comply with stipulated level of capital adequacy.

The fund, SBI said, would be raised either through a follow-on public issue, qualified institutional placement, rights issue, private placement, global depository receipt, American depository receipt or a 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 a 58.60 per cent stake in the bank. Last year, the state-owned lender raised 8,032 crore by selling shares through qualified institutional placement to fund its business growth.

Besides, the government infused 2,000 crore capital in the bank during the last fiscal year.

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Source: PTI