A recent press report said that Downplaying Moody’s decision to downgrade rating of State Bank of India is not going to fast-track recapitalization of the PSU bank.
Reports said that State Bank of India (SBI) had submitted the proposal a couple of months back to raise Rs 20,000 crore through the rights issue. The bank is in need of funding to implement its growth plans over the next two fiscals.
According to a report, an official from SBI has said that the bank is not planning to raise any overseas debt immediately and so the government is not much worried about the ratings downgrade. He also said that the government is on track of recapitalize the bank.
Reports said that the bank has issued USD 625 million of such debt in two tranches — USD 400 million and USD 225 million. Both these debts are due for call option in 2017.
SBI is one of the largest Indian banking and financial services company is aggressively occupied in Community Services Banking; it is also involved in offering Educational loan to students in order to pursue education in India or aboard. The bank also provides a variety of services including SBI Internet banking, SBI Life Insurance, SBI Personal Loan, SBI Home Loan, SBI Auto loan, loan against mortgage of property etc.