SBI to raise Rs 15,000 cr via equity offering

Keeps option open for overseas issue

The country’s largest lender, State Bank of India (SBI) plans to raise share capital of up to Rs 15,000 crore through an equity offering to support loan growth and meet capital adequacy requirements.

It will seek shareholders approval for plans for raising capital through a public issue or rights offering or private placement.

The bank may also use the global depository receipt and American depository receipt route to raise money.

The bank's committee of directors for capital raising had decided to take an approval from the shareholders for raising additional equity share capital up, SBI informed the BSE.

The bank requires adequate capital to match the anticipated growth in asset and comply with stipulated level of capital adequacy, it said.

The move comes in the backdrop of the Cabinet permitting banks to lower the government holding from 58% to 52%, enabling lenders to raise funds from the market to meet Basel III norms.

The SBI stock closed flat at 329 on the BSE on Tuesday.

The extraordinary general meetings of shareholders may be held in a month. Shareholders approval is valid for about a year.

It would also approach the Central government, which holds about 58.6 per cent stake, and Reserve Bank of India for a formal approval, senior SBI official said.

Its capital adequacy, (under Basel-III) was 12.2 per cent, with Tier-I of 9.6 per cent in September 2014.

Last year, the bank raised Rs 8,032 crore by selling shares through the qualified institutional placement route to fund its business growth. 

Besides, the government infused Rs 2,000 crore capital in the bank during the last fiscal. 

For the current fiscal, the government has earmarked Rs 11,200 crore for capital infusion in various public sector banks including SBI. The disbursement may take place during this quarter.