State Bank Of Mysore Plans To Mop Up Rs 200 Crore Via Float

State Bank of Mysore plans to raise between Rs 150 crore and Rs 200 crore from the public once it receives clearance from the government.

SBM managing director M Sitarama Murthy told Business Standard that with the funds raised from the public, the bank expects to have around Rs 400 crore (including profits of around Rs 250 crore over a period of three years) totally which will help it to double its credit.

He, however, said the there were some issues such as voting rights which need to be resolved before the bank can raise funds from the public. "These need to be cleared up before we can look at raising funds from the public," he said.

 

Murty said State Bank of India, which currently holds 92 per cent stake in the bank, is allowed to shed up to a maximum of 45 per cent in the bank. At present, the public holding in the bank is around 7.4 per cent. The bank came out with a rights issue in 1996 and in January, 2001, it floated a Rs 65 crore bond.

The Tier-I capital of the bank currently is Rs 312.81 crore as of March 31, 2002 compared with Rs 284.96 crore during the same period last year. The tier-II capital currently is Rs 238.04 crore as of March 31, 2002 compared with Rs 185.54 crore.

The bank's capital adequacy ratio is 11.81 per cent compared with Rs 11.16 per cent last year. Earnings per share ratio is currently at Rs 183.03 from Rs 71.45 in March 2001 while the book value of the share stands at Rs 976.55 compared with Rs 810.33 last year.