SBI subsidiaries likely to raise Rs 3,000 crore

Mumbai, Sept 29 | Updated: Sep 30 2006, 05:33am hrs
The seven associate banks of State Bank of India (SBI) are expected to raise about Rs 3,000 crore over the next 2-3 years, to augment their tier I and tier II capital.

Speaking at the sidelines of a conference on global banking organised jointly by Ficci and IBA, Y Vijayanand, deputy managing director and group executive (associate and subsidiaries), SBI said, Our associate banks would be raising Rs 3,000 crore of Tier I and Tier II capital over the next 2-3 years.

Either State Bank of Hyderabad or State Bank of Patiala would be the first among SBIs associate banks to hit the capital market, he added.

The capital raised would be by way of public or private placement from the domestic market. Vijayanand expects a growth of 25% year-on-year growth for the overall business of its associate banks. But the state bank of India will continue to hold majority stake he said.

Pointing out that the car of the associate banks stood at 11%, he said there was no need for any fund infusion from the parent SBI. If support is warranted, SBI will put in money but presently there is no need for this, he said.

On SBIs mutual funds and insurance subsidiaries, he said there was need to improve our numbers.