New Delhi : Public sector banks, including SBI, Bank of Baroda and IDBI Bank, plan to raise Rs 58,000 crore through equity dilution during the current fiscal to meet Basel-III norms and clean up their balance sheets.
Leading the pack, country’s largest lender SBI plans to raise Rs 15,000 crore through share sale and expects this to complete by the year-end, probably through a qualified institutional placement (QIP).
“This is something for which we have everything in place but we will go when we find the market is conducive,” SBI Chairperson Arundhati Bhattacharya has said.
Besides, Bank of Baroda and Central Bank of India plans to raise Rs 6,000 crore and Rs 65,000 crore from capital markets, respectively.
Oriental Bank of Commerce and IDBI Bank have taken board’s approval for raising Rs 5,000 crore each through equity dilution, while Mumbai-based Union Bank of India plans to Rs 4,950 crore during the current fiscal.
Raising funds from the market will ease the pressure on the exchequer of pumping in capital.
As per the Indradhanush plan public sector banks need to raise Rs 1.10 lakh crore from markets, including follow-on public offer, to meet Basel-III requirements, which will kick in from March 2019.
