State Bank of India today approved a fundraise of up to Rs 25,000 crore this year, including up to Rs 5,000 crore through bonds to meet capital adequacy norms.
“The board has approved the plans to raise Rs 20,000 crore… by selling shares FPO/QIP/preferential allotment/rights issue/any other mode or a combination of these,” the country's largest state-run lender said in a statement to the exchanges. The mode of sale will be decided by shareholders, the Reserve Bank of India, the market regulator SEBI and the government.
The board also approved issuing of up to Rs 5,000 crore of tier-2 bonds in rupee/dollar to overseas and/or domestic investors in the current financial year, through a public offer/private placement.
The fundraising will enable provision for credit growth, Managing Director Anshula Kant told BloombergQuint. “We're witnessing good domestic credit growth of around 11-12 percent on a yearly basis.”
Shares of SBI declined for the third day, ending 0.3 percent lower at Rs 260.35.
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