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Our Bureau

Awaits Parliamentary nod for SBI Act amendments

MR O.P. BHATT

New Delhi , Dec 7

SBI plans to tap the domestic capital market next fiscal to fund its business growth, according to the Chairman, Mr O.P. Bhatt.

Speaking to newspersons on the sidelines of the third Asia Forum, organised by the London School of Economics, Mr Bhatt said that the bank was awaiting Parliamentary nod to the proposed amendments in the State Bank of India Act before it goes about raising more tier-I capital.

Asked to specify a timeline for the capital offering, he said: "We will not be able to do so before the next fiscal."

SBI had not come out with any public offering of equity shares in the last 10 years.

Mr Bhatt also said that the bank has headroom to raise equity capital even if the existing condition in the SBI Act, mandating minimum RBI holding of 55 per cent, were to stay.

Currently, the RBI holds 59.73 per cent stake in the bank. SBI's paid-up capital as on September 30, 2006 stood at Rs 526.30 crore.

"Going by the existing Act, we can raise so much more capital from the market," Mr Bhatt said.

SBI is looking to raise Rs 2,000 crore of tier-II capital by March 31, 2007.

Mr Bhatt maintained that there were no immediate plans for overseas acquisition, but indicated that the bank would start operations in Israel by March 2007.

On interest rates, he said that he expects short-term rates to be stable. On deposits growth, he said that the growth this year was faster than the last year primarily due to increase in retail and NRI deposits.

As regards credit growth, SBI's credit growth has slipped by about two per cent to 28 per cent.

Mr Bhatt also said that SBI was working on a number of gold-related products for customers and that various options were being discussed within the bank.

Related Stories:
SBI may raise more tier-II capital
SBI plans to raise Rs 2,000 cr

More Stories on : Public Sector Banks | Public Offer | State Bank of India

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