SBI To Raise Rs 15,000 Crore Via Equity Capital in FY18
The lender hiked stake in its two credit card joint ventures to 74% for Rs 1,160 crore.
The country's largest lender State Bank of India (SBI) will tap the capital markets to raise Rs 15,000 crore in the next fiscal by way of institutional placement, rights issue or follow-on public offer (FPO).
The central board of SBI, at its meeting on Wednesday, approved raising of equity capital during financial year 2017-18, the lender said in a filing to the stock exchanges.
The mode of fund raising would be decided at the "opportune time" subject to approval of the government and the Reserve Bank of India (RBI), the filing added.
Separately, SBI will hike its stake in two credit card joint ventures with General Electric Company to 74 percent for Rs 1,160 crore, the bank said in a another stock exchange filing.
In SBI Cards and Payments, which is the marketing and distribution arm of the credit card company, the bank will hike ownership from 60 percent to 74 percent. In the back-end technology arm, GE Capital Business Process Management Services, the lender will increase its holding from 40 percent to 74 percent.
SBI entered credit card business in 1998 by roping GE Capital India, the consumer finance arm of US-based GE Capital. Currently, SBI Cards' board has eight members, including three from GE Capital.