Baharampur (West Bengal), Jan 31 (Inditop.com) Country’s largest lender State Bank of India (SBI) needs to raise about Rs.40,000-50,000 crore of capital for the next five years, a senior official said here Sunday.
“Capital raising depends on many factors. Firstly, the state of the market and then need for budgetary provision if the government decides to issue capital to us,” SBI chairman O.P. Bhatt said at a press conference here in West Bengal’s Murshidabad district.
He, however, said the bank would decide on how to go about the fund raising within the next six months to one year’s time.
Bhatt was in Murshidabad Sunday to attend an event organised by SBI to mark its coverage of the 100,000th un-banked village at Sannyasidanga and inauguration of the group’s 20,000th ATM at Barala.
He further said SBI is in advanced stage of foraying into wealth management business, which could be in the form of a joint venture. The bank is in talks with two foreign entities in this regard.
“We need expertise of a foreign partner and it could be either in the form of a joint venture or could even be through a memorandum of understanding,” he said.
SBI expects to complete the merger of subsidiary, State Bank of Indore, by March.
Bhatt said the bank would go for the merger the day the government approves it and hopes to complete it during this year.
Talking about the bank’s plans for the Initial Public Offering of its insurance arm, SBI Life, Bhatt said he expects it to come within a year.
SBI owns 74 percent stake in SBI Life Insurance and the balance is with BNP Paribas Investment Services Private Ltd.
