SBI plans to raise up to Rs 20k cr

Written by fe Bureaus | Mumbai | Updated: Jan 26 2010, 06:38am hrs
The State Bank of India (SBI) needs a capital infusion of Rs 10,000 crore in 2010, said chairman of the bank OP Bhatt.

The government will invest to the extend of its shareholding of 60%. We dont have any capital raising plan for the fiscal as our CAR currently stands at 14%. We are looking at capital raising in the range of Rs 10,000 to Rs 20,000 crore during the next fiscal, said Bhatt.

He also said the state-run bank would add the proceeds from its stake sale in UTI Asset Management Co in the March quarter. The company received Rs 170 crore from the sale, of which 50 % would be a profit, he said.

SBI, at present, has got a surplus liquidity of Rs 75,000 crore. Bhatt said even if the Reserve Bank of India (RBI), which is going to announce review of its Monetary Policy for the third quarter on January 29, increases its cash reserve ratio (CRR) by 50 basis points, it will result in sucking out liquidity worth Rs 20-25,000 crore from the bank which is now overloaded with a surplus liquidity of Rs 75,000.

Still we will have sufficient liquidity and therefore, I dont think there will be any rise in the interest rate on lending for six months from now, he said.

The bank has got a sanctions worth Rs 40,000 crore for the infrastructure sector for the nine months of the current fiscal, but disbursals are only to the tune of Rs 2,000 crore so far. Most of the disbursals are only in the forms of letter of credit.

The share of home loan in the banks lending portfolio stands at 13-14%. The bank got sanctions of Rs 1,50,000 crore in this segment. SBIs home loan portfolio is increasing at the rate of Rs 1,600 crore per month, he said

The bank has opened 1000 ATMs in last nine months, but there has not been much improvement on the usage front as hits per ATM has gone down to 322 from 333 nine months ago. Hence we have decided to go slow on the front now on, Bhatt said.