The country's the premier lender - State Bank of India (SBI) - may have to delay its Rs 20,000 crore rights shares issue plan as cash-strapped government, which its majority shareholder, does not seem to be in a position to shell out money for SBI's planned rights issue of shares in the current financial year. However, a decision would be taken soon after taking into account the government's finances and the bank's need for funds.
This comes in light of the state run bank’s plan of raising up to Rs 20,000 via right issue of shares in the June Quarter of the present financial year. Wherein, the government was expected to inject up to Rs 15000 through the rights issue. Further, the bank also plans to raise around Rs 40,000 crore in the next five-years to meet its lending requirements. This will be in addition to Tier II capital and in addition to retail earnings which account for Tier I capital.
Recently, the State Bank of India increased its base rate by 75 basis points (bps) to 9.25% p.a. from its existing 8.50% p.a. with effect from May 12, 2011 in line with the hike in key interest rate by Reserve Bank of India (RBI). The bank has also increased its Benchmark Prime Lending Rate (BPLR) by 75 bps and will be 14.00% p.a. from its existing 13.25% p.a. with effect from May 12, 2011.
Company Name | CMP |
---|---|
SBI | 820.95 |
Bank Of Baroda | 246.25 |
Canara Bank | 101.10 |
PNB | 101.40 |
Union Bank Of India | 119.20 |
View more.. |