SBI approaches FinMin for raising Rs 20,000 crore from market
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SBI seeks nod to raise Rs 20K cr

The country's largest lender, SBI, has sought the Finance Ministry's nod for raising Rs 20,000 crore from the market, a key official said on Thursday.

 PTI   
  • New Delhi,  September 17, 2010  
  • |  
  • UPDATED   12:13 IST

The country's largest lender, SBI, has sought the Finance Ministry's nod for raising Rs 20,000 crore from the market, a key official said on Thursday.

"We have received the proposal (from SBI). We are examining it," Financial Services Secretary R Gopalan said.

Asked what mode SBI would choose to tap the market, he said, "They have suggested everything."

The amount would enable the banking behemoth to fuel its business plans, particularly in the face of rising competition from private and overseas rivals with deep pockets.

Earlier this month, SBI Chairman O P Bhatt said the bank plans to raise Rs 20,000 crore through a rights issue.

Bhatt had replied in the negative when asked whether he has received information from the government on reducing the size of the proposed rights issue, as suggested by media reports.

To a query on whether the lender would still go for a rights issue if the government cuts the size, Bhatt had said that he favoured a rights issue.

The government holds a 59.41 per cent stake in the bank, having acquiring RBI's stake in SBI in 2007.

Parliament recently passed a Bill allowing the government reduce its stake in the bank to 51 per cent, against the current minimum limit of 55 per cent.