Business Daily from THE HINDU group of publications
Thursday, Sep 13, 2007
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Business Daily from THE HINDU group of publications Thursday, Sep 13, 2007 ePaper |
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Public Sector Banks Money & Banking - Rights Issue Markets - Public Offer
Mr O.P. Bhatt Mumbai, Sept. 12 The country’s largest lender State Bank of India plans to raise Rs 10,000 crore by December, either through a follow-on public issue or a rights issue. “We are considering various options for raising funds, but we are yet to decide,” said Mr O.P. Bhatt, Chairman, State Bank of India. He added that although the bank planned to raise capital by December, the exercise could spill over to next year. Commenting on the asset quality, Mr Bhatt said that while the gross and net non-performing assets of banks were coming down, there was no decrease in NPAs in absolute terms. 
The economy is growing at 9 per cent and the credit offtake has been growing at 30 per cent for the last four years. “Many companies are coming up in the products and services sectors and huge amount of assets are being built,” he said. With such a large build-up, NPAs are inevitable and, therefore, could be a cause of concern. Corporate governance should address the issue of inculcating credit discipline and managing NPAs in the banking sector. Asked about merger of the State Bank group’s associate banks, Mr Bhatt said: “We would first like to learn from our experience of merger with Bank of Saurashtra. We have not set any time frame for mergers.” Why did SBI pick up State Bank of Saurashtra to kick off consolidation? SBI net jumps 78.5% in Q1 SBI: Impressive performance despite the gloss More Stories on : Public Sector Banks | Rights Issue | Public Offer | State Bank of India
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