March 10, 2010 8:00 PM

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SBI proposes to bring rights issue to raise funds for business growth

State Bank of India, the country's largest lender, would prefer a rights issue to raise funds for business growth rather than diluting Government holding. O P Bhatt, Chairman of SBI said this to reporters in Mumbai today.He said the bank wants the Government to continue to be the major stake holder in SBI. Bhatt said if there is an opportunity to raise capital quickly and efficiently, the bank would like to do that. Recently, the Government tabled the SBI Act Amendment Bill in the Lok Sabha, which would enable the reduction of state-holding in the bank to 51 per cent from around 59 per cent now. However, Bhatt indicated that the bank is unlikely to go for the rights issue immediately as it has enough capital and good liquidity position at the moment. He said SBI has a surplus liquidity of close to Rupees 50,000-crore, against Rupees 75,000-crore in December.

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