Financial Services Secretary, Rajiv Takru, says that the bank will be raising close to Rs 9,000 crore through a qualified institutional placement (QIP) for which proposals for approvals are already underway.
State Bank of India (SBI) may soon be raising around Rs 9,000 crore through a qualified institutional placement (QIP) programme, says Rajiv Takru, secretary of department of financial services. It is awaiting approvals from the government and the Reserve Bank (RBI) which will be done on a fast-track basis, he tells CNBC-TV18.
Below is the edited transcript of his interview to CNBC-TV18.
Q: Could you give an update on the qualified institutional placement (QIP) programme?
A: It is going to come to the government for approval. It also goes to RBI for approval. So, I expect those approvals would go through quickly. After that they (SBI) would have their extraordinary general meeting and then go back to the board for final issue; all fast tracked.
Q: What is the percentage of private placement that will happen in SBI?
A: There are two options they have thought of. One is exactly in proportion to what the government has released and the other that in the last two infusions of equity, there was no QIP. So, they have asked us if it is possible for them to also do QIP on those two infusions they had done.
We have promised them we will look at it. We will have a look at that also which would allow them to get about additional Rs 9000 crore odd.
Q: By when will this happen?
A: Right away. We don’t take time to look at all these things.