SBI to decide on fund raising by Oct

State Bank of India (SBI) today said it will decide in the next two months whether to go for a rights issue or public offer for raising funds.

"It is still taking shape. The decision would be taken in a month or two," SBI Chairman O P Bhatt said on the sidelines of PSU Bankers' meeting with Finance Minister P Chidambaram here.

The timing and quantum of raising would be decided thereafter, he said.

The rights issue would allow the bank to raise tier-I capital without diluting government shareholding, which stands at 59.73%.

The bank is planning to raise around Rs 15,000 crore during the current fiscal through a mix of tier I and tier II bonds.

On hiving of its asset management company and insurance venture into a separate holding company, Bhatt said the decision has been taken.

"We are now trying to establish the company. It would take another 2-3 months to set up the new company," he said.