SBI to raise Rs 7000 cr capital

State Bank of India (SBI) will be raising an additional capital of Rs 6,000-7,000 crore in 2006-07 through a mix of subordinate debt, hybrid debt and preferential capital.

A K Purwar, chairman, said, "This year, we will be raising between Rs 6,000 crore and Rs 7,000 crore. It will a mix of subordinate debt, hybrid debt and preferential capital. To begin with, we will be raising Rs 500 crore as subordinate debt with a greenshoe option."

The bank has set target of 16 per cent growth in deposit and 23 per cent growth in advances.

"The actual advance might be a little more than our target of 23 per cent," he added.

Meanwhile, to emerge among the top 50 banks in the world within three to four years, SBI will continue its overseas acquisitions in the current financial year.

Purwar said, "We are actively considering acquisitions of few more overseas banks in 2006-07. The focus is on Asia and Africa."

In 2005-06, the bank acquired majority stake in three overseas banks, based in Mauritius, Indonesia and Kenya. The bank is also open to domestic acquisitions.