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SBI needs to raise Rs 40,000 crores in next five years: OP Bhatt
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merisarkar news service
New Delhi, February 25, 2010 |
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SBI would raise Rs. 40,000 crores: OP Bhatt
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SBI Chairman and Managing Director OP Bhatt said that the bank needs to raise around Rs 40,000 crore of capital over the next five years. He said this will be done through a rights issue.
"In the next five years, we need to raise somewhere around Rs 40,000-crore. This is in addition to Tier II capital and in addition to retail earnings which account for Tier I capital," OP Bhatt said in New Delhi.
However, he observed that this number would keep changing depending upon the requirements of the bank and its subsidiaries.
 SBI plans to raise Rs 20,000 crores in next fiscal |
SBI said that it plans to raise half the amount of Rs. 20,000 crores in the next fiscal.
Mr. Bhatt said, "In the next financial year, we are looking at a ceiling of around Rs 20,000-crore--it could be anywhere between Rs 10,000-20,000-crore."
He observed that althought the bank was fairly well-capitalised at 14 percent plus but the bank always looks at a slightly longer term horizon of five-years.
Mr. Bhatt added that the bank kept updating its capital requirement for the next five-years every quarter or six-months.
He said that the bank will take the decision at an opportune time on the issue.
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