Home ECONOMY SBI to raise Rs.15,000 crore equity capital

SBI to raise Rs.15,000 crore equity capital

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Chennai, Jan 28:

The country’s largest mortgage lender — State Bank of India (SBI) — has decided to raise equity capital of Rs.15,000 crore to meet the increased capital needs for matching the anticipated growth in business, the bank said.

sbiThe bank said the equity issue is also to maintain its capital adequacy ratio (CAR) at 12 percent from fiscal 2014-15 and 2015-16.

According to a filing with the Bombay Stock Exchange (BSE), the bank said post issue the government of India’s holding will not fall below 52 percent.

The bank said it would raise the additional capital through follow-on-public offer (FPO)/rights issue/private placement including qualified institutions placement/global depository receipts/American Depository Receipts or a combination of the all these.

According to the SBI, it is confident of getting the nod from the Reserve Bank of India (RBI) and the central government for the issue.

According to the filing, the SBI’s board would determine the terms and conditions for the issue as approved by RBI and the central government based on the market conditions. IANS