SBI’s Rs20,000 crore rights issue: govt seeks more details
30 Sep 2010
State Bank of India, the country's largest lender, said on Wednesday that the finance ministry had asked for more details on its proposed Rs20,000-crore rights issue.
''They (the finance ministry) have come back to me and asked for some more information (on the proposed rights issue),'' SBI chairman O P Bhatt said at the launch of special banking services for the para-military forces in New Delhi.
Earlier this month, the SBI chief had met financial services secretary R Gopalan on its proposed rights issue.
As part of its resource raising plan, SBI this week filed the draft prospectus with market regulator Securities and Exchange Board of India for raising up to Rs1,000 crore through the issue of bonds to retail investors. SBI intends to deploy the proceeds to augment its capital base in line with its growth strategy.
This is the first time when bonds are being issued by a bank for retail investors wherein the minimum application amount is Rs10,000.
However, the coupon rate and mode of interest payment would be decided later. Lower tier II bonds would have maturity of 10 years, while the upper tier II bonds would have a tenor of 15 years.
