SBI may raise Rs50,000 cr for expansion

SBI may raise Rs50,000 cr for expansion
PTI
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First Published: Tue, Jun 26 2007. 11 02 PM IST
Updated: Tue, Jun 26 2007. 11 02 PM IST
Mumbai: The country’s largest lender, State Bank of India Ltd (SBI), said on Tuesday that it is likely to raise Rs50,000 crore for its expansion plans in the domestic and overseas markets in the next three years and that it proposed to form a holding company for its non-bank subsidiaries.
“In the next three years, roughly Rs50,000 crore of capital may be needed by SBI in addition to normal plough back of profits to meet our challenging business growth and expanding role overseas,” SBI chairman O.P. Bhatt said.
SBI also plans to float a subsidiary to manage pension funds under the New Pension Scheme for government employees, he said.
To achieve better financial planning and reduce the demand on SBI for capital infusion in some of its subsidiaries, Bhatt said, “We are considering setting up a holding company for our non-banking subsidiaries.”
To begin with, the bank’s shareholdings in the asset management and insurance companies would form the holding company.
The holding company can be listed separately and capital can be raised for the use of the two companies, he said adding that “this will enable the bank to capture the value that was available in these businesses”.
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First Published: Tue, Jun 26 2007. 11 02 PM IST