State Bank of India (SBI) on Monday said its board will consider an extension of the approval accorded by the central board of the bank for raising equity capital of up to Rs 20,000 crore till March 31, 2020.
The bank’s board will meet on March 22, SBI said in a regulatory filing.
Initially, SBI had planned to access the capital markets to raise Rs 20,000 crore for supporting adequate capital requirements to match the anticipated growth in assets and comply with stipulated level of capital adequacy, the lender said in a release on November 2, 2018.
The state-owned lender had proposed to use the proceeds of the issue to meet long-term funding requirements, capital requirements, capital expenditure, making investments, providing loan and advances, enhance long-term resources and thereby strengthening its financial structure.
The overall capital adequacy ratio (CAR) of SBI stood at 12.77 per cent, as against the regulatory requirement of 11.325 per cent as on December 31, 2018. —FE