SBI plans public offer during Nov-Jan

Country’s largest lender State Bank of India is planning to raise capital through public offer of shares in the market and is awaiting the nod of the finance ministry. The bank is expected top raise around Rs 10,000 crore to fuel its capital requirements for business growth and statutory requirement.

“We are in discussion with the finance ministry and awaiting clearance from them. Once we get clearance, capital would be raised within 90 days,” SBI chairman O P Bhatt said.

The said amount is be either through a follow on public offer (FPO) or rights issue. In case of a public offer, government’s stake will be diluted, whereas in the case of rights issue it’ll remain the same. Bhatt was in the capital to participate in the meeting called by finance minister P Chidambaram to discuss credit needs of the auto, auto-component and paper industries.