FM to meet SBI board on August 6

Briefing reporters on the sidelines of Ficci Banking Conclave here, he said, the interaction assumes significance in view of pending rights issue of SBI, which the government has to compulsorily subscribe to if it wishes to maintain its stake at the same level.

Chaudhuri said the proposed rights issue would help in raising Tier-I capital, while a portion of company’s annual profits would also utilised. He said the bank’s capital requirement for next three years would be Rs 47,000 crore, out of which Rs 20,000 crore would come from rights issue and Rs 27,000 crore from annual profits at Rs 9,000 crore per annum.