Mumbai: State Bank of India (SBI) on Wednesday said its board had approved a plan to raise up to Rs15,000 crore in equity capital in the next fiscal year. The funds could be raised through various means including a public offer, employee stock purchase scheme and overseas issuance of shares, the lender told stock exchanges
The mode of fund raising would be decided at the “opportune time” subject to approval of the government and the Reserve Bank of India, it added.
This will help the bank improve its capital adequacy position which stood at 13.73% at the end of December, higher than the minimum 10.25% requirement under the Basel III norms.
Separately, SBI also informed the stock exchanges that it had received the board’s approval to raise its stake in two credit card joint ventures with GE Capital for Rs1,160 crore.
In SBI Cards and Payments, the marketing and distribution company, the bank will increase its ownership from 60% to 74%. In GE Capital Business Process Management Services, the back-end technology company, the lender will increase its holding from 40% to 74%.
The bank had said in November that it was looking to raise Rs5,681 crore through the issuance of preferential shares to the government, its majority shareholder, in the current fiscal, but that hasn’t happened so far.SBI will.merge with its five associate banks on 1 April.
SBI shares rose 0.98% to close at Rs277.40 on Wednesday on BSE, while the benchmark Sensex lost 0.15% to close at 29,398.11 points.