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SBI to raise up to Rs15,000 crore via equity capital next fiscal

LiveMint logoLiveMint 15-03-2017 Gopika Gopakumar

Mumbai: State Bank of India (SBI) on Wednesday said that its board has approved a plan to raise up to Rs15,000 crore through equity capital in the next fiscal year. The issue could be via various means including a public offer, employee stock purchase scheme and overseas issuance of shares, the lender told stock exchanges.

This enabling resolution will help the bank improve its capital adequacy position which stood at 13.73% at the end of December, higher than the minimum 10.25% requirement under the Basel III norms. The bank had said in November that it is looking to raise Rs5,681 crore by issuance of preferential shares to the government, its majority shareholder, in the current fiscal, but that hasn’t happened so far.

Separately, SBI also informed the stock exchanges that it has received board approval to hike its stake in two credit card joint venture companies with General Electric for Rs1,160 crore. In SBI Cards and Payments, which is the marketing and distribution arm of the credit card company, the bank will hike ownership from 60% to 74%. In the back-end technology arm, GE Capital Business Process Management Services, the lender will increase its holding from 40% to 74%.

SBI shares rose 0.98% to close at Rs277.40 per share on Wednesday on BSE, while the benchmark index, Sensex lost 0.15% to close at 29398.11 points.

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