Centre seems more details on SBI rights issue

							State Bank of India on Wednesday said the Finance Ministry had asked for more
details on its proposed Rs.20,000-crore rights issue.
鈥淭 hey (Finance Ministry) have come back to me and asked for some more
information (on the proposed rights issue),鈥?SBI Chairman O. P. Bhatt said on the
sidelines of an event here.
Earlier this month, SBI Chief had met Financial Services Secretary R. Gopalan on its
proposed Rs.20,000-crore rights issue.
As part of its resource raising plan, SBI this week filed the draft prospectus with
market regulator SEBI for raising up to Rs.1,000 crore through the issue of bonds to
retail investors.
SBI intends to deploy the proceeds to augment its capital base in line with its growth
strategy.
This is the first time when bonds are being issued by a bank for retail investors
wherein the minimum application amount is Rs.10,000.
However, the coupon rate and mode of interest payment would be decided later.
Lower Tier II bonds would have maturity of 10 years, while the Upper Tier II bonds
would have a tenor of 15 years. The bonds are not deposits of the bank and are not
guaranteed or insured and they may not be used as collateral for any loan made by the
bank or any of its subsidiaries or affiliates, SBI said.
Teaser loan scheme extended
Meanwhile, the bank said it would extend its 8 per cent concessional home loan
scheme, popularly called teaser rates, by another three months till December.
The popular home loan and car loan schemes by SBI were due to expire on September
30.