SBI to raise Rs 3,000 crore by March this year
State Bank of India (SBI) Monday said it would raise about Rs 3,000 crore through preference shares in the next 3 months but ruled out the possibility of it coming out with a rights issue.
New Delhi: State Bank of India (SBI) Monday said it would raise about Rs 3,000 crore through preference shares in the next 3 months but ruled out the possibility of it coming out with a rights issue.
"As of now it will be through preferential allotment. The government has indicated about Rs 3,000 crore. It should happen by March 31," SBI Chairman Pratip Chaudhuri said here.
This is part of Rs 12,000 crore infusion plan approved by the Finance Ministry recently. The Cabinet is likely to consider the same during this week.
Asked if the bank is considering rights issue, he said, "not currently."
Last fiscal, the government had infused Rs 7,900 crore in SBI to increase the Tier-I capital of the country's largest bank.
Following the capital infusion in March 2012, the government holding in SBI rose to 61.58 percent from 59.4 percent.
SBI had raised over Rs 16,000 crore through a rights issue in 2008. In its rights issue, the government's contribution was in the form of bonds instead of cash.
The government has been infusing funds in the public sector banks in the last couple of years to strengthen their finances. It has injected about Rs 32,000 crore so far in the previous two financial years.
On the consolidation of associate banks with itself, Chaudhuri said, "It could be considered next year."
SBI has five associate banks -- State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
The bank did the first ever amalgamation of its associate State Bank of Saurashtra in 2008, followed by State Bank of Indore in August 2010.
On the loan growth, he said, the credit growth number today is relatively less than what it was last year.