SBI to raise Rs 800-1,200 cr by issuing shares to employees

Tags: SBI, News
State Bank of India has proposed to offer share purchase scheme for all its employees which could raise additional equity capital, between Rs 800 crore and Rs 1,200 crore, for the country's largest lender.

"We are planning to offer employees share purchase scheme and not employees stock option scheme," SBI Chairperson Arundhati Bhattacharya said here today during her first visit to the city after taking over as the chief of the bank.

"We have written to the government on this. We cannot say about the valuation now, but the total amount will be worth Rs 800-1,200 crore," she said without divulging details on how different would be the bank's scheme from traditional Esops.

How much the bank's equity capital increases would depend on the valuation at which the bank would offer shares to its employees.

Bhattacharya was talking to reporters at the Tata Medical Centre at Rajarhat, New Town, where the bank donated about Rs 6 crore towards part cost of a new Pet CT scan machine at the hospital.

She said the share purchase scheme would be offered to all bank employees, irrespective of their posts.

"The bank will offer shares to employees at a discount from market price. We hope to implement this in the next fiscal (2014-15), subject to approval," Bhattacharya said.

The bank had 2.23 lakh employees on its rolls as on December 2013.

On selling of NPAs, Bhattacharya said there were some plans regarding this and remained optimistic on recovery.

"You are only concentrating on the 5 per cent. But, we have also to concentrate on the 95 per cent of the credit," she added.

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E-mail ID will not be published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

  • Regional parties that brought diversity to Indian democracy are at a dead end

    In the two decades, which began in 1989, when the paradigm of coalition politics came to dominate central governments, it would have sounded far-fetch

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

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Kuruvilla Pandikattu SJ

What we can learn from agnosticism

As an agnostic, the American writer David Breeden is aware ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture