NEW DELHI,NOV 08:
The country’s largest lender SBI said on Tuesday it plans to raise up to Rs 20,000 crore through various modes, including a follow-on public offer (FPO), to fund its growth. The shareholders of the bank will meet on December 7 to consider the proposal to raise funds, SBI said in a regulatory filing.
The bank said consent of the shareholders will be sought to issue equity shares for an amount not exceeding Rs 20,000 crore or such amount as approved by the government and the Reserve Bank by way of public issue (FPO) or private placement including qualified institutional placement (QIP)/GDR/ADR or any other mode or a combination as may be decided by the board.”The proceeds of the issue are proposed to be used to meet long term funding requirements of the bank, bank’s growth capital requirements, to meet capital expenditure, making investments/providing loans and advances, enhance its long term resources and thereby strengthening the financial structure of the Bank and its subsidiaries and associates and other general banking purposes as permitted by applicable laws,” it said.Banks globally have to adhere to Basel-III capital requirements by January 1, 2019. However, domestic banks are set to follow the norms by March 31. It was implemented in phases from April 2013 in India.”The bank’s overall capital adequacy ratio (CAR), as on 30th June, 2018, stands as 12.83 per cent, with CET-I Capital at 9.80 per cent.
