SBI plans to set up holding company for raising funds

Tags: News
Soon after the Finance Ministry asked the banks for exploring options for raising funds, State Bank of India (SBI) today announced plans to set up a holding company for the purpose.

"It (setting up a holding company including all subsidiaries) is one of the possibilities (for raising capital)....Currently, there is no clear view on this," SBI Chairperson Arundhati Bhattacharya said here.

The proposal for setting up of a holding company with the government, she said, adding, it requires regulatory clearances.

Setting up of holding company would also require amendment to SBI Act, she added.

Earlier in the day, Financial Services Secretary G S Sandhu said various options like ESOPs, SPV model and holding company model were discussed in the meeting of Finance Minister P Chidambaram with heads of PSU banks by which banks could raise funds from market to meet their capital requirement.

Under the bank-wise holding company model suggestion, he said, the bank will transfer all its subsidiaries to the new company which in turn can tap market for funds.

"RBI has approved it (holding company model). We are waiting for Sebi's reply then we will go ahead," he said.

Sandhu said government can provide capital only up to a limited extent remaining funds have to be raised from the market.

"Beyond that (government capital infusion) we trying to enable them that they have to come up with options...RBI is also working on various options. So, we are very soon going to finalise some of these options to enable them to raise money from the market," he said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • RBI must keep a strict vigil on private debt inflows

    A little over a year ago, RBI governor Raghuram Rajan had observed that central banks of the developed world were excessively liberal with printing mo

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

When too little could mean too late

The calamity in Jammu and Kashmir has once again shown ...

Purnendu Ghosh

Why art and science are natural partners

Art is qualitative and is generally associated with emotions. Science ...

Shona Adhikari

A toast to established and emerging talent

This week, our focus is on upcoming exhibitions in the ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture