MUMBAI: State Bank of India is planning to raise up to Rs 10,000 crore through an equity issue through the QIP (Qualified Institutional Placement) route, as part of its capital raising plan, in a combination of bond and equity issuances, sources said.
The bank, which had sought shareholder approval to raise equity of up to Rs 20,000 crore in December, has decided to go for only Rs 10,000 crore now considering the market conditions, they said. The SBI chairman, Rajnish Kumar, had told reporters earlier that the bank was in the market for Tier I bonds and would do an equity QIP at an appropriate time.
Bank of America, CLSA, and HSBC have been picked up as the lead arrangers, along with Kotak Mahindra Bank and SBI Capital Markets, Bloomberg reported. The government has been pushing banks that are in a position to tap the markets to raise capital to fund loan growth.