Money & Banking

SBI to raise ₹15,000 cr before end of this fiscal

Our Bureau Kolkata | Updated on January 23, 2018 Published on May 22, 2015

Arundhati Bhattacharya, Chairman, SBI

To dilute stake in SBI Life, valuation exercise has begun: Chairman

The State Bank of India is looking to raise ₹15,000 crore from the markets within the next 10 months, Chairman Arundhati Bhattacharya said here on Friday.

“We have all the necessary approvals. We have a window of 10 months and the money will be raised at the right time,” she told newspersons.

The fund-raising mode — follow-on public issue, rights issue or private placement, including a possible qualified institutional placement — is yet to be decided.

Offices abroad

SBI will also set up representative offices in Sao Paulo (Brazil) and Yangon (Myanmar). Operations in Sao Paulo are expected over the next two-three months, while operations in Yangon will start in June.

This apart, the bank is also planning to improve its operations in neighbouring Sri Lanka and Bangladesh by deepening its product mix.

Diluting SBI Life stake

Bhattacharya also maintained that the valuation exercise of private life insurer SBI Life Insurance has already begun.

The private life insurer, a joint venture between SBI and BNP Paribas Cardif, recorded an 11 per cent growth in net profit to ₹820 crore in FY15.

“The decision to dilute stake in SBI Life will depend on valuation. The valuation exercise has already begun,” she added.

Organisational revamp

The bank, Bhattacharya said, has undergone an organisational restructuring whereby all heads of business verticals — barring HR, IT and the CFO — will be reporting to their respective Managing Directors (MD).

The bank has also created the post of two new MDs, thereby taking the total number to six.

The HR and IT heads and the CFO will continue to report directly to the Chairperson.

Published on May 22, 2015
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