Kolkata: State Bank of India might raise Rs 20,000 crore in 2009-10 preferably by way of a rights issue in order tofunditsgrowthneeds,according to its Chairman, O.P. Bhatt. Also see “We need capital for growth, andthere are many ways for raising it. We have various options of raising capital such as such as follow-on-offer, rights issue or preferential issue.
“Our preferred option will be the rights issue,” Bhatt told newspersonshere on Friday on the sidelines of the function held ontheoccasionofthereleaseof the book “The Evolution of StateBankofIndia,Vol4,19551980”.Morebankstories.
The book was released by the West Bengal Governor, Gopal Krishna Gandhi. Govt nod awaited The bank, Bhatt said, was awaiting Government
approval for raising the fund.
The Union Government holds 59.41 per cent stake in the bank at present.
More India business stories The bank would need to raise Rs 60,000-70,000 crore in the next five years for expansion. SBI had issued close to 10.5 crore shares to raise
about Rs 16,700 crore by way of a rights issue in March 2008. The issue was priced at 35 per cent discount to the then market price at Rs 1,590 ashare.
The bank had also raised about Rs 5,000 crore by way of tier II bonds in January this year.
—Agencies