SBI to issue FPO/QIPs to raise funds, expand base

The country's largest lender SBI on Tuesday said it plans to raise funds from capital markets in the current fiscal but did not specify the amount. State Bank of India, which last month merged with itself five associate banks and the Bharatiya Mahila Bank, will raise funds through follow-on public offer/qualified institutional placement to expand business. It has sought applications from merchant bankers for managing the issue. "The bank intends to tap capital markets via a QIP/FPO. The issue size may vary based on various factors including but not limited to management discretion and the decision of the shareholders," SBI said in a public notice.The bank said it proposes to select and appoint up to 6 merchant bankers with requisite experience who together will be designated as Book Running Lead Managers (BRLMs). SBI has already taken board approval for raising up to Rs 15,000 crore through various means public offer and overseas issuance of shares during the current fiscal. Nifty Trading Tips

In a stock exchange filing, the bank said a general meeting of the shareholders of SBI will be held on June 15 to elect four Directors to the Central Board of the bank. Meanwhile, the government will continue to support public lenders based on requirements as was announced by the Finance Minister in his Budget speech, said an official. In the Budget 2017-18 speech on February 1, Finance Minister Arun Jaitley announced capital infusion of Rs 10,000 crore for the current fiscal. "In line with the Indradhanush road map, I have provided Rs 10,000 crore for recapitalisation of banks in 2017-18. Additional allocation will be provided, as may be required," Jaitley had said. SBI's stock closed at Rs 296, down 0.89 per cent, on BSE. Future & Option Trading Tips