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Saturday, March 19, 2005

SBI awaits nod for merger of associate banks (Financial Express)

SBI awaits nod for merger of associate banks
(Financial Express)
OUR BANKING BUREAU
Posted online: Saturday, March 19, 2005 at 0000 hours IST

HYDERABAD, MARCH 18: Aiming to meet its additional capital requirements in the background
of rising credit offtake, the State Bank of India (SBI) is planning to raise Rs 3,000 crore from the
market during the second or third quarter of this year. The bank is also planning another
overseas acquisition for fiscal 2006.

“The associate banks and the subsidiary are doing well and have different products and
different schemes. The virtual merger of SBI, its associate banks and its only subsidiary is taking
place. The legal clearance needs to come and we are waiting for the same. We believe it will
happen at an appropriate time,” the SBI chairman said.

Recently, SBI had made an acquisition in Mauritius. After opening the bank’s 5,000th ATM here
on Friday, SBI chairman AK Purwar said that the bank is looking at various options to raise the
funds, including through subordinated debt, public offer and fund-raising abroad.

Responding to various queries, Mr Purwar said the capital market is good and attractive.
However, the bank prefers the subordinate debt route.

“We are not ruling out issuing a public offer and partly raising money from overseas markets. We
will decide in April and raise the amount in the second or third quarter of this year,” he said.

According to Mr Purwar, the assets growth has been unprecedented on an year-on-year basis.

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