State Bank of India, the largest lender in the country, is planning to raise around Rs.20,000 crore to fund future growth. According to a report by Business-Standard, the money is likely to be raised through multiple modes, with shareholders of SBI meeting on December 7 this year to discuss the same.
SBI will seek to get approval of the shareholders to issue equity shares valued at Rs.20,000 crore (or an amount approved by the RBI and government). The equity shares are likely to be issued through FPO or private placement or a mode agreed upon by the board.
The amount raised is likely to be utilised to meet SBI’s long-term funding expectations, in addition to meeting capital expenditure. The amount is also likely to be used to make investments and build resources.
Sources: Business-Standard, Moneycontrol