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State Bank of India gets nod to raise Rs 15,000 crore from market

27 Feb 2015 Evaluate

In a bid to fund business and meet global capital adequacy norms, State Bank of India (SBI), the nation’s biggest lender, has received its shareholders’ approval for raising Rs 15,000 crore through a public offer, including a rights issue. The move comes in the backdrop of the Cabinet permitting banks to lower the Government holding from 58 per cent to 52 per cent enabling lenders to raise funds from the market to meet Basel III norms.

Last year, the bank raised Rs 8,032 crore by selling shares through the qualified institutional placement route to fund its business growth.  Besides, the government infused Rs 2,000 crore capital in the bank during the last fiscal.

SBI has registered a rise of 30.24% in its net profit at Rs 2910.06 crore for third quarter ended December 31, 2014 as compared to Rs 2234.34 crore for the same quarter in the previous year. However, total income of the bank has increased 12.07% at Rs 43783.91 crore for Q3FY15 as compared Rs 39067.91 crore for the corresponding quarter previous year.

SBI Share Price

1094.10 -9.30 (-0.84%)
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Peers
Company Name CMP
SBI 1094.10
PNB 112.80
Canara Bank 140.90
Bank Of Baroda 276.05
Union Bank Of India 179.65
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