SBI to persuade govt for rights issue: Bhatt

State-run banking major State Bank of India (SBI) would persuade the government to agree to a rights issue to help the bank raise capital, its chairman O P Bhatt said today.

"We want to raise capital without reducing government's stake," Bhatt told reporters here.

He said that the government holding in the bank is at 59 per cent, adding that it has to be kept at 55 per cent as per the SBI Act.

Bhatt said that once the amendment to the SBI Act is passed in Parliament, government holding could go down to 51 per cent.

"So, we have a room for eight per cent stake dilution in SBI which would fetch the bank Rs 15,000 crore to Rs 20,000 crore at current prices," Bhatt said.

He, however, said that it was more keen for a rights issue for long-term interests of the bank. "We will pursue the government to agree to it," Bhatt said.

The money would be raised this fiscal, he said.

For the first time, SBI would introduce retail bonds in the Indian market.