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SBI Receives Approval To Raise Up To Rs. 25000 Crores

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State Bank of India is aiming to raise up to Rs. 25,000 crores within the duration of the current fiscal year, including up to Rs 5,000 crore through bonds, to meet the capital adequacy norms.

According to a regulatory filing by the bank, the central board has given its approval to raise up to Rs 5,000 crore in USD/domestic currency through the issuance of Basel III-compliant Tier 2 bonds to overseas and/or Indian investors during 2018-19, through a public offer/private placement.

The largest bank in the country also received the board’s approval for an enabling resolution for raising equity capital.

According to the filing, “The resolution provides for raising equity capital up to an amount of Rs 20,000 crore during FY2018-19 from the market by way of FPO/QIP/preferential allotment/rights issue/any other mode or a combination of these, to be decided at the opportune time.”

The State Bank of India had recently decided that it would triple the purchase of loan portfolios from non-banking financial companies (NBFC).

The bank has reportedly tripled the target from its previous level. While the bank had initially targeted to take over Rs 15,000 crore through portfolio purchases from NBFCs during the current year, this has been enhanced by Rs 20,000-30,000 crore.

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