State Bank of India needs capital in excess of Rs 60,000 crore ($15 billion) in the next three years to develop its business and expand globally. | |
| The country's largest lender will transfer its stakes in SBI Life and SBI Mutual Fund into a holding company. The holding company will be listed on the stock exchanges to capture value of investments. |
| |
| "The bank may require roughly Rs 50,000 crore in the next three years. This is in addition to ploughing back profits to meet business requirements," SBI chairman O P Bhatt said addressing annual general meeting. |
| |
| Another SBI official said the bank expects to plough back profits worth Rs 10,000 crore in the next three years. The credit growth is estimated at 28 per cent (y-o-y), in an optimistic scenario. |
| |
| Bhatt said the bank was likely to hit the capital market with a follow-on public issue this year. It was in talks with merchant bankers and government on modes of raising capital (equity and bonds), he added. |
| |
| The bank will need to raise Rs 10,000 crore to maintain the tier-I capital above 8 per cent. Its tier-I capital base is 8.01 per cent. The capital adequacy stood at 12.34 per cent at the end of March 2007. |
| |
| On the interest rate trends, the SBI chairman said the call rates had remained below 3 per cent for the last three weeks, and the lending rates were expected to soften in the short-run. |
| |
| The bulk deposit rates had also come down, he added, but did not comment on any cut in the term deposits rates (card rates). |
| |
|
| |
