SBI plans to raise up to Rs 250 bn in FY19 to meet capital adequacy

The country's largest bank SBI said Monday it seeks to raise up to Rs 250 billion during the current financial year, including up to Rs 50 billion through bonds to meet capital adequacy norms.

The central board of the bank gave its approval to two proposals of the bank, State Bank of India (SBI) said in a regulatory filing.

The board accorded approval to the bank to raise Basel III compliant Tier 2 bonds up to Rs 50 billion in USD/domestic currency to overseas and/or Indian investors during 2018-19, through a public offer/private placement.

SBI also received approval for an enabling resolution for raising equity capital.

The resolution provides for raising "equity capital up to an amount of Rs 200 billion during FY2018-19 from the market by way of FPO/ QIP/ Preferential allotment/ Rights lssue/ any other mode or a combination of these, to be decided at the opportune time", the filing said.

SBI shares closed almost flat at Rs 259.95 on BSE.