State Bank of India (SBI) is planning to raise capital through public offer of shares in the market. It  is awaiting the finance ministry clearance to meet additional capital requirements for business growth and statutory requirement.

“We are in discussion with finance ministry. Once we get clearance, capital would be raised within 90 days,” SBI Chairman O P Bhatt told reporters here.

The bank is expected to raise around Rs 10,000 crore either through follow on public offer (FPO) or rights issue. Government’s stake would be diluted if the bank brings out a public offer but will remain unchanged in case of rights issue.

Credit growth sags
Admitting that the bank’s credit growth was marginally lower than the target of 23-24 per cent till September end, he said once the sanctioned loans are disbursed, it is expected to go up. We are hopeful to achieve up to 25 per cent credit growth this fiscal.

Mr Bhatt said the capital would be raised from the market even if the credit growth remained lower than the target rate.