State Bank of India (SBI), the country's biggest public sector lender, is likely to raise more funds as it will need beyond the $1.6 billion assured by the government to meet rising demand for loans in an expanding economy. The bank needs around Rs 15,000 crore a year including retained profit.
The government will inject Rs 7,900 crore by buying shares through a preferential allotment. The investment is likely to raise the government's holding by 2-2.25% from 59% currently.
SBI is premier banking institution with 206 years of banking experience. It is India’s largest commercial bank in terms of assets, deposits, profits and number of branches and employees. The bank has 13,686 branches across the country, while the SBI group has 18,506 branches.
