Country’s largest lender State bank of India (SBI) on Tuesday said it plans to raise funds through follow-on public offer (FPO) and Qualified institutional placement (QIP) in the current financial year, and sought applications from merchant bankers for managing the issue.
The SBI said it intends to appoint up to 6 merchant bankers with required experience, who will be designated as Book Running Lead Managers. The bank plans to tap capital markets via a Qualified institutional placement and follow-on public offer. The issue size may differ depending on various factors including but not limited to management decision and prudence shareholders. The bank has already taken the consent of the board for raising up to Rs. 15000 Cr, through various ways of public offer and overseas issuance of shares during the current financial year. The deadline of submission of bids by merchant bankers for managing the QIP/FPO is May 22.
SBI’s CA-ratio (capital adequacy) as on December figured at 13.73%, well within the minimum requirement of 9%. Last year, as a part of its capital infusion plan, SBI had acquired Rs. 7,575 Cr from the govt, while the bank has slated Rs 10,000 Cr, cumulative for all banks in 2017 – 18 and 2018 – 19 each.