India’s one of the largest bank SBI decides to raise their revenue approx Rs 5,000 crore before March. In this short, SBI launches their BONDS plan for their customers.
SBI chief Arundhati Bhattacharya, who on October 1 became the first woman head of SBI Bank said, ”We will generate funds through the tier-II bonds at the end of this financial year hopefully. It should be in the range of about Rs 5,000 crore.” She announced their new fund raising plan at the annual Bancon summit in Mumbai.
In their continues conversational speech she said, Earlier this week-SBI planned to raise over Rs 9,000 crore in tier-I capital through various sources to strength core capital.
Besides, the Government has also promised to infuse Rs 2,000 crore through a preferential allotment of shares. Bhattacharya said, the bank will lend to all the sectors where it sees viability but added that it will focus more on growing the retail book.
SBI’s Growth and margins
On the topic of growth and interest margin, SBI head Bhattacharya maintained her cautious stance saying, “Times are very volatile hence there is no guidance on the margins.” In spite of the problems on the economic front, she said SBI is maintaining its credit growth target at 16-18 %.
Referring to the inflation, which surged to 10% for October, Arundathi said she expects the much more challenging retail inflation to cool down by January as the services component is under control and with the arrival of more food stocks into the market on good monsoons.
She said SBI has not been informed by the Reserve Bank about any move to extend the FCNR(B) deposits raising window.
The bank started late on the scheme, introduced by RBI in September to attract dollars, and has already mopped up to $500 million, she said, adding that the number will go up by the end of the month when the scheme is scheduled to close.