State Bank of India (SBI) said on Thursday that it was looking to raise Rs 20,000 crore of capital during the current financial year through a rights issue.
But the bank is also weighing other options, including a follow-on public offer, in case the rights issue doesn't go through.
“The Government stake would not be affected by the rights issue. But it will be up to the Government if it wants to divest stake in the bank by not taking part in the rights issue. In case it does not happen, there are also options of raising the funds through preferential issue or follow-on offer,” Mr O.P. Bhatt, Chairman of SBI, told a press conference here on Thursday to announce its first quarter results.
Gross advances went up by Rs 1,14,035 crore, a growth of 20.74 per cent over the corresponding quarter last year.
Home loans disbursed grew 29.83 per cent to Rs 74,669 crore (Rs 57,513 crore). Growth in the disbursement of education loans stood at 30.75 per cent while auto loans disbursement registered a 48.06-per cent increase.
“Education loans portfolio is looking very healthy. We have a market share of 25 per cent in the segment and our current education loan portfolio stands at Rs 9,364 crore,” said Mr Diwakar Gupta, Deputy Managing Director and Group Executive.
Mr Bhatt added that the bank continues to target an annual credit growth of 21-22 per cent. The bank faced pressure from non performing assets (NPA). Gross NPAs during the quarter increased by about 35 per cent to Rs 20,825 crore (Rs 15,318 crore).
“Pressure on the NPAs is coming from the agricultural, retail and small and mid-sized corporate sectors,” he said.
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