SBI to choose between rights, public offer in 2 months

SBI to choose between rights, public offer in 2 months
Comment E-mail Print Share
First Published: Wed, Aug 01 2007. 06 54 PM IST
Updated: Wed, Aug 01 2007. 06 54 PM IST
PTI
New Delhi: India’s biggest lender State Bank of India (SBI) said on 1 August it will decide in the next two months whether to go for a rights issue or public offer for rising funds to meet capital requirement.
“It is still taking shape. The decision would be taken in a month or two,” SBI chairman O P Bhatt said on the sidelines of PSU Bankers’ meeting with Finance Minister P Chidambaram here.
The timing and quantum of raising would be decided thereafter, he said.
SBI share closed at Rs1,548.25, down 4.69% or Rs76.25 on the BSE on 1 August.
The rights issue would allow the bank to raise Tier-I capital without diluting government shareholding, which stands at 59.73%.
The bank is planning to raise around Rs15,000 crore during the current fiscal through a mix of Tier-I and Tier-II bonds.
On hiving of its asset management company and insurance venture into a separate holding company, Bhatt said the decision has been taken.
“We are now trying to establish the company. It would take another 2-3 months to set up the new company,” he said.
The country’s largest private sector lender ICICI Bank established a holding company for its investments in the insurance and mutual fund subsidiaries a couple of months back.
Investments in ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance Company, Prudential ICICI Asset Management Company and Prudential ICICI Trust Ltd was transferred to ICICI Holdings.
Comment E-mail Print Share
First Published: Wed, Aug 01 2007. 06 54 PM IST