The country?s largest public sector lender SBI on Wednesday said it needs to raise around Rs 40,000 crore in the next five-years.
Speaking to reporters here Chairman O P Bhatt said half of the total amount would be raised through a rights issue.
?In the next five-years, we need to raise somewhere around Rs 40,000 crore. This is in addition to Tier II capital and in addition to retail earnings which account for Tier I capital,? he said.
Tier II capitals are basically money raised through bonds which has got fixed tenure and rate.
?We need to raise some equity and we will do it in the next financial year. It will be a rights issue. In the next financial year, we are looking at a ceiling of around Rs 20,000 crore ? it could be anywhere between Rs 10,000 and Rs 20,000 crore,? he said.
The amount to be raised, he said would, however, keep changing depending upon requirements, especially of the bank?s subsidiaries.
Though the bank was fairly well-capitalised at 14 per cent plus, ?we always look at a slightly longer-term horizon of five-years,? Bhatt said.
The bank kept updating its capital requirement for the next five-years every quarter or six-months, he added.
The bank would raise funds at an opportune time depending upon market conditions, the government?s pricing and requirement of its subsidiaries, especially its insurance arm, which is unlisted, the SBI Chairman said.
