SBI for fund raising by FPO, QIP next fiscal

Country's largest lender State Bank of India on Sunday said it would explore the possibility of raising capital through a public offer or from institutional investors next fiscal even as it is getting Rs 7,900 crore support from the government by end of this month.

Country's largest lender State Bank of India on Sunday said it would explore the possibility of raising capital through a public offer or from institutional investors next fiscal even as it is getting Rs 7,900 crore support from the government by end of this month.

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"In the next fiscal beginning April 2012, we would discuss with the government for dilution of its stake through FPO (follow-on-public offer) or QIP (qualified institutional placement)," said Pratip Chaudhuri, chairman, SBI.

"We should be understanding that government cannot keep on pumping in capital (in public sector banks) without any limit," he said. "So, we would explore the possibility of FPO or QIP next fiscal after due consultation with the government.