SBI to raise Rs 15,000 crore by December:CMD

Kolkata, Aug 2(UNI) With the credit and deposit outlook of 25 and 20 per cent respectively in the current fiscal, State Bank of India intends to raise a capital of Rs 15,000 crore by December either through Upper Tier II route or international funds.

''If the government reduces its stake in the SBI from 59 to 55 per cent, we can raise Rs 5,000 crore through stake dilution.

Otherwise we will have to raise Rs 15,000 crore through other routes,'' SBI CMD O P Bhatt said.

The SBI is planning to raise at least Rs 5,000 crore from the share flotation. It intends to use the money to expand existing operations and enter venture capital, private equity and wealth management segments.

Though there has been a lot of debate on this issue of stake reduction of the Union Government in SBI, the government has not taken any decision on it.

SBI is governed by a separate Act which pegs the minimum government holding at 55 per cent. While the governmet's current holding is 59.73 per cent.

Asked about the interest rate increase, he said it had reached its peak. ''We expect softening of deposits interest rates.'' UNI