SBI gets a nod for raising Rs170bn: report

State Bank of India (SBI) has reportedly been allowed to raise funds through public issue of fresh equity shares, thereby leading to dilution of the Government's stake to 51% from 59.4% at present. In the process, SBI can raise over Rs170bn at its present share price of Rs1,708. According to reports, SBI has approached the Finance Ministry to get its approval for raising funds to support its business growth. The public sector bank's capital adequacy ratio (CAR) stands at 12.97% under the Basel I norms. As SBI's deposits are likely to grow at over 20% in the current financial year, its CAR will fall to around 10%. However, as per the Finance Ministry's prudential norms, all the banks should maintain a CAR of 12%. SBI said it would like to maintain its CAR at 13%. To attain this target, it has to raise funds from the markets, added the reports