SBI eyes up to 20,000-cr from rights issue by end-FY 11

SBI eyes up to 20,000-cr from rights issue by end-FY 11

Mumbai: State Bank of India (SBI) will be raising up to Rs20,000-crore through a rights issue and hopes to launch it before March 2011, a top bank official said.

“We will be raising up to 20,000-crore through the rights issue...the map has to be put in place properly...we have had a discussion with the government on it," the country’s largest lender’s chairman, O P Bhatt, told reporters in Mumbai Friday.

Bhatt said he was hopeful of a final decision on the issue by December-end and the issue to hit the market before the culmination of the current fiscal.

“We have had a discussion (with the government). We have also sent a paper from our side," he said, adding now only a few points needed to be fine-tuned.

Deputy managing director and chief financial officer, SS Ranjan, said that the government which presently holds an over 59 % stake in the bank would not be diluting its holding.

“The Government of India has been subscribing to the capital of various public sector banks including those which are adequately capitalised...the capital requirement (from the government’s side) for SBI would definitely be a bit high," Bhatt said.