SBI to increase share capital by Rs 16,000 cr

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Bangalore, Nov 22: The premier public sector State Bank of India proposes to increase its share capital by Rs 16,000 crore by April 2008, State Bank Group Chairman Om Prakash Bhatt said.

Addressing a press conference here after awarding Rs One Crore to the Indian Hockey Team for retaining the Asia Cup title at a glittering function last night, he said the Centre had been asked to invest Rs 10,000 crore towards share capital its approval was awaited. After getting this investment, the Bank would raise another Rs 6,000 crore through Rights issue, he said.

''It is almost Ten years that the share capital has not been raised. So we approached the Union Government to invest Rs 10,000 crore and approval is expected shortly. Rights issue may be floated by March or April 2008,'' he said.

Mr Bhatt ruled out the possibility of change in interest rates in the next six months.

Replying to a question, he said the SBI's making strides in all front and the deposit has risen by 61 per cent and advances by 11 point.

He said that SBI was the only Bank which has reached more than one lakh remote villages where there was no banking facility.

To another question, he said RBI approval was awaited for the merger of 6 Non-Banking Finance Companies. ''But we have to see the staff expectation and other issues before taking the final step''.


UNI

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