SBI plans rights issue worth Rs. 20,000 crore; to continue with teaser rate for car loan

By | June 15, 2010

India’s biggest lender, State Bank of India plans to raise Rs. 20,000 crore through rights issue by the end of this fiscal. It also plans to continue with its teaser rate on car loans.

SBI chairman OP Bhatt said, “It is still at the conversation stage (with the government)… If at all it comes up, may be it would be coming up towards the end of this fiscal year”.

He also said that the bank would be seeing tense liquidity condition in June due to payment for 3G spectrum auction. But he added, “However, the liquidity position should ease by next month”.

SBI had previously hinted that it may raise capital valued at Rs.70,000 crore in the next 5 years through rights issue for expansion and consolidation plans.

Mr Bhatt had said, “We need capital for growth and there are various options of raising capital such as follow-on-offer, rights issue or preferential issue. Our preferred option will be the rights issue”.

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