This is an unconfirmed news. do not jump into conclusions
State Bank of India is likely out with a mega Right Issue @ 1 right
share for each 2 share held in the bank for raising around Rs. 19000
crore in six months time.
The price brand shall be in range of 730-780.
--------------------------------------------------------------------------
Financial Insights, an IDC Company
in joint venture with TCS has drawn up plan to transform the big
indian bank from a 'financial laggard' to true 'hero bank of india'
under the report 'Transforming A Giant'
----------------------------------------------------
The Tribune Tuesday, July 25, 2006, Chandigarh, India reported that
SBI mulls rights issue
The SBI has approached the Finance Ministry for floating a rights issue
to meet core capital requirements in the coming years, its Managing
Director T. S. Bhattacharya said today.
Mr Bhattacharya said that since the government holding would not be
allowed to go down below 51 per cent, the other option was to float a
rights issue for which the government had to subscribe to.
While the government holding in the bank was 59.73 per cent, the
balance was free floating. However, he said the bank would be able to
meet the Tier I capital requirements till 2008 by way of ploughing back
profits. The bank would raise Tier II and foreign currency bonds to
meet additional capital requirements, Mr Bhattacharya said, adding that
the SBI was targeting 25 per cent asset growth in the next few years.
-------------*-------------------------
The Union Cabinet on March 22 2006 gave its nod for legislative changes
that will enable State Bank of India (SBI) to sell shares in its
associate banks.
The changes will also facilitate SBI to split the shares of its
subsidiaries. However, this will require Parliament's approval.
SBI has seven associate banks of which only three - State Bank of
Travancore (SBT), State Bank of Mysore (SBM) and State Bank of Bikaner
and Jaipur (SBB&J) - are listed. These shares are of Rs 100 face
value. At present, no individuals can hold more than 200 shares in the
listed entities.
As on December 31, 2005, SBI holds 75 per cent stake in SBT, 92.3 per
cent in SBM and 75 per cent in SBB&J. Other subsidiaries are: State
Bank of Hyderabad, State Bank of Patiala, State Bank of Indore and
State Bank of Saurashtra.
Mr A.K. Purwar, Chairman, said earlier this week that SBI can sell up
to 49 per cent in the associate banks once the amendment to the Act is
passed.
State Bank of India is likely out with a mega Right Issue @ 1 right
share for each 2 share held in the bank for raising around Rs. 19000
crore in six months time.
The price brand shall be in range of 730-780.
--------------------------------------------------------------------------
Financial Insights, an IDC Company
in joint venture with TCS has drawn up plan to transform the big
indian bank from a 'financial laggard' to true 'hero bank of india'
under the report 'Transforming A Giant'
----------------------------------------------------
The Tribune Tuesday, July 25, 2006, Chandigarh, India reported that
SBI mulls rights issue
The SBI has approached the Finance Ministry for floating a rights issue
to meet core capital requirements in the coming years, its Managing
Director T. S. Bhattacharya said today.
Mr Bhattacharya said that since the government holding would not be
allowed to go down below 51 per cent, the other option was to float a
rights issue for which the government had to subscribe to.
While the government holding in the bank was 59.73 per cent, the
balance was free floating. However, he said the bank would be able to
meet the Tier I capital requirements till 2008 by way of ploughing back
profits. The bank would raise Tier II and foreign currency bonds to
meet additional capital requirements, Mr Bhattacharya said, adding that
the SBI was targeting 25 per cent asset growth in the next few years.
-------------*-------------------------
The Union Cabinet on March 22 2006 gave its nod for legislative changes
that will enable State Bank of India (SBI) to sell shares in its
associate banks.
The changes will also facilitate SBI to split the shares of its
subsidiaries. However, this will require Parliament's approval.
SBI has seven associate banks of which only three - State Bank of
Travancore (SBT), State Bank of Mysore (SBM) and State Bank of Bikaner
and Jaipur (SBB&J) - are listed. These shares are of Rs 100 face
value. At present, no individuals can hold more than 200 shares in the
listed entities.
As on December 31, 2005, SBI holds 75 per cent stake in SBT, 92.3 per
cent in SBM and 75 per cent in SBB&J. Other subsidiaries are: State
Bank of Hyderabad, State Bank of Patiala, State Bank of Indore and
State Bank of Saurashtra.
Mr A.K. Purwar, Chairman, said earlier this week that SBI can sell up
to 49 per cent in the associate banks once the amendment to the Act is
passed.