SBI rights issue to hit in fourth quarter

SBI rights issue to hit in fourth quarter

Kolkata: The proposed rights issue of State Bank of India is expected to hit the market during the fourth quarter of the current financial year, said T.S. Bhattacharya, managing director, SBI.

Bhattacharya said the rights issue would help the bank in meeting the risk mitigating norms. The state owned bank plans to raise Rs12,000 crore from the capital market to shore up capital base.

The bank did not opt to go for a follow-on public offer since current stipulations did not allow government holding to go down below 55%.

He said there was the resource crunch despite a growing demand from the infrastructure sector. When asked about the bank’s performance during the current financial year, he said the percentage growth in assets and liabilities would be higher than the previous year.

Saying that the banking sector was facing a huge resource crunch for lending, Bhattacharya added that the Foreign Currency Non Resident (FCNR) route was drying up due to rising rupee.

Asked about the interest rates, he said it was not likely to fall in the short-to-medium term.