SBI to take decision on raising fund from QIP in a month
Financial Services Secretary Rajiv Takru said that banks will be allowed to raise capital from the markets in the proportionate amount infused by the government to maintain the government's shareholding
October 23, 2013 / 11:52 IST
State Bank of India (SBI) today said it will take a decision on raising fund through qualified institutional placement (QIP) in a month's time.
"We will take a decision on QIP shortly...within a month," SBI Chairperson Arundhati Bhattacharya said here. "Now, whatever capital they (government) give, to that extent we can take QIP or whatever other ways possible...So that we can retain the government stake at the same level," she said.Financial Services Secretary Rajiv Takru said that banks will be allowed to raise capital from the markets in the proportionate amount infused by the government to maintain the government's shareholding."Government shareholding will not go down from the current level," he said. On capital infusion, Bhattacharya said last time also when the govt infused money in SBI, they had actually increased their shareholding from 58 per cent to 63 percent.Last fiscal, the government had infused Rs 3,004 crore into SBI. The lender raised the money through a preferential allotment of shares to the government. Asked about measure taken to reduce non-performing assets, she said: "We have to extend the time period that we have given to them in order to perform."If management change is required, it will be done for recovery of loan, she said. "But it is not something that will be done in one or two days' time. We will a considered view. We will consider it as one of the ways in which to resolve the NPAs," she added. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
