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Business News/ Industry / SBI to raise up to Rs15,000 crore via equity capital next fiscal
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SBI to raise up to Rs15,000 crore via equity capital next fiscal

SBI could raise funds by various means including a public offer, employee stock purchase scheme and overseas issuance of shares

State Bank of India had said in November that it is looking to raise Rs5,681 crore by issuance of preferential shares to the government, its majority shareholder, in the current fiscal, but that hasn’t happened so far. Photo: MintPremium
State Bank of India had said in November that it is looking to raise Rs5,681 crore by issuance of preferential shares to the government, its majority shareholder, in the current fiscal, but that hasn’t happened so far. Photo: Mint

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.

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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.

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ABOUT THE AUTHOR
Gopika Gopakumar
Gopika Gopakumar has worked for over 15 years as a banking journalist across print and television media. Her expertise lies in breaking big corporate stories and producing news based TV shows. She was part of the 2013 IMF Journalism Fellowship Program where she covered the Annual & Spring meetings of the International Monetary Fund in Washington D.C. She started her career with CNBC-TV18, where she also produced a news feature show called Indianomics and an award winning show on business stories from South India called Up South. She joined Mint in 2016.
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Published: 15 Mar 2017, 09:10 PM IST
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