State Bank of India on Wednesday announced that it had plans to raise Rs.20,000 crore through a rights issue along with another Rs.200 crore from bonds this fiscal to fund business growth.

“We are expecting to raise Rs.20,000 crore from a rights issue,'' bank Chairman O. P. Bhatt told reporters here on the sidelines of a CII event.

He said the issue might come up by this fiscal end since the bank was now talking to the government about it. “It is still at the talks stage. That is why if at all it comes up, it would be towards the end of this fiscal,'' he added. The government holds about 59 per cent stake in SBI and the rights issue is subscribed by the existing shareholders.

On the bond issue to retail investors, Mr. Bhatt said, the bank planned to raise around Rs.200 crore in the first half of this fiscal. The money would be raised from the domestic market and bonds would be offered to retail investors..

Keywords: rights issueSBICII

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