Rights issue- SBI

Source :TOI ::MUMBAI: 22 JAN2011




The State Bank of India (SBI) chairmanO P Bhatt on Saturday said the bank will not be able to raise Rs 20,000 crore from rights issue unless it receives government nod for the fund raising programme by the first week of February. 

"We are waiting for the permission from the finance ministry ... if it does not come by the first week of February, I don't think it can go through (in 2010-11)," he told reporters after announcing the quarterly results of the bank here. 

In case of some delay in government approval, he said, bank might seek waiver of norms from market regulator Securities and Exchange Board of India (SEBI) to ensure that rights issue goes through in the current fiscal itself. 

" SEBI can waive the mandatory time period under special provisions and if it does then the issue can take place in the current fiscal," he added. 

Bhatt also exuded confidence that SBI rights issue would sail through comfortably despite poor market sentiments witnessed at Bombay Stock Exchange and National Stock Exchange in the recent past. 

"There is no question of the issue failing as every existing investor of SBI will happily pick up the issue," the SBI chief said. 

SBI has been planning to raise resources through rights issue to augment its lending operations.