Thursday, June 28, 2007

SBI stake sale by Dec; to float NBFC

State Bank of India (SBI) is likely to go for a stake sale by December as part of its efforts to mobilise Rs 50,000 crore in the next three years.

"We are awaiting amendment to the SBI Act. We should be able to go for a stake sale by December," chairman O P Bhatt told reporters today.

The bank will also form a non-banking financial company (NBFC) to manage its insurance and asset management businesses for which details are being worked out, Bhatt said.

Bhatt also said that the issue of preferential shares was another option for raising capital, and it would be also considered once the amendment is through.

Bhatt said SBI would be forming joint venture for the NBFC, and is looking at both Indian and foreign partners. Regarding its listing, Bhatt said the bank would not sell more than 10% as the main purpose of the sale would be price discovery.

Read more in The Business Standard article.

No comments: