Country's largest lender State Bank of India ( SBI) said it would explore the possibility of raising capital through a public offer or from institutional investors next fiscal even as it is getting Rs7,900 crore support from the government by end of this month.
'In the next fiscal beginning April 2012, we would discuss with the government for dilution of its stake through FPO (follow-on-public offer) or QIP (qualified institutional placement),' State Bank of India ( SBI) Chairman Pratip Chaudhuri said.
'We should be understanding that government cannot keep on pumping in capital (in public sector banks) without any limit. So, we would explore the possibility of FPO or QIP next fiscal after due consultation with the government,' he said.
For raising the Tier I capital of the bank, the government has agreed to infuse capital to the tune of Rs7,900 crore by March 31, 2012.
Post capital infusion, the government holding in the bank would rise to 62%, from about 59% at present.
As per the existing regulation the government holding cannot come down below 51%.
So there is headroom for stake dilution of about 11% in the bank, he said, if the government permits, the bank may go in for raising capital.
Terming 0.75 per centage cut in Cash Reserve Ratio (CRR) a week ahead of the mid-quarterly review of monetary policy on March 15 as a 'surprise,' he said this would help easing liquidity pressure on the system.
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'In the next fiscal beginning April 2012, we would discuss with the government for dilution of its stake through FPO (follow-on-public offer) or QIP (qualified institutional placement),' State Bank of India ( SBI) Chairman Pratip Chaudhuri said.
'We should be understanding that government cannot keep on pumping in capital (in public sector banks) without any limit. So, we would explore the possibility of FPO or QIP next fiscal after due consultation with the government,' he said.
For raising the Tier I capital of the bank, the government has agreed to infuse capital to the tune of Rs7,900 crore by March 31, 2012.
Post capital infusion, the government holding in the bank would rise to 62%, from about 59% at present.
As per the existing regulation the government holding cannot come down below 51%.
So there is headroom for stake dilution of about 11% in the bank, he said, if the government permits, the bank may go in for raising capital.
Terming 0.75 per centage cut in Cash Reserve Ratio (CRR) a week ahead of the mid-quarterly review of monetary policy on March 15 as a 'surprise,' he said this would help easing liquidity pressure on the system.
....more info