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State Bank of India is likely to come out with a rights issue in February to fuel its business plan, a senior bank official said today.
“That (Rights issue) is going to happen sometime in February,” said Mr Pratip Chaudhuri, SBI Deputy MD and Group Executive of International Banking on the sidelines of 9th Pravasi Bharatiya Divas. SBI Chairman Mr O P Bhatt in November last year had shared the bank’s plans to raise as much as Rs 20,000 crore from the rights issue.
Mr Chaudhuri said, “size is yet to be decided and it depends on the amount the government is willing to commit. The government is very much positive.”
The government at present holds about 59 per cent stake in SBI. If it clears the proposal, the government will have to subscribe the issue to the extent of its holding, so as to maintain its stakeholding at the existing level.
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