The Hindu Business Line : SBI rights issue to open on Monday

New Delhi, Feb. 14 The Rs 16,700-crore rights issue of State Bank of India (SBI) will open on February 18. Official sources said that the rights offering from the country’s largest commercial bank would be open for subscription for a month.

SBI is offering one share of Rs 10 each for every five held at a price of Rs 1,590 per share. The Government, which currently holds 59.73 per cent stake in SBI, plans to issue bonds worth Rs 10,000 crore to the bank towards its share in the rights issue. The Government is likely to subscribe to the rights offering on the last date of the rights issue.

Meanwhile, official sources said that the proposal for the planned merger of State Bank of Saurashtra (SBS) with State Bank of India (SBI) did not come up before the Cabinet meeting here on Thursday. Once the Cabinet approval is obtained, indications are that the Centre would move a Bill in the ensuing budget session of Parliament to repeal the State Bank of Saurashtra Act.

State Bank of Saurashtra is the smallest of the seven associate banks of the SBI. The Government is already facing pressure from the Left parties and certain MPs on the issue of merger of associate banks with SBI. They have urged the Government not to go ahead with the consolidation plans within the SBI group.

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