SBI rules out further capital infusion

State Bank of India (SBI) will not require fresh capital for two years after its forthcoming Rs 11,500 crore qualified institutional placement goes through, and any overseas bond sale is expected only after the QIP.

“That (government infusion through a preferential issue followed by the QIP) is the process we are going to follow this year and it will see us for the next two years,” SBI Chairperson Arundhati Bhattacharya said. 

Post QIP, government holding in the bank will go down to 58 per cent, she said.“This will take the government stake to 58 per cent. Thereafter, whether they will put money again and dilute again, whether they will dilute below 58 per cent, I do not have any (answer)... It is for the government to decide,” Bhattacharya said. 

She declined to comment on whether the bank will adopt the preferential allotment and QIP routes to remain adequately capitalised to meet the Basel III capital needs.

The government has promised to infuse Rs 2,000 crore through a preferential allotment of shares as part of its Rs 14,000 crore recapitalisation of the public sector banks this fiscal. It will be followed by a QIP issue of Rs 11,500 crore by March this year.

Liked the story?

  • 0

  • 0

  • 0

  • 0

  • 0