PSBs plan to raise funds through equity dilution
Public Sector Banks (PSBs), including SBI, Bank of Baroda and IDBI Bank, plan to raise Rs 58,000 crores through equity dilution during the current fiscal to meet Basel-III norms and clean up their balance sheets. Leading the pack, SBI plans to raise Rs 15,000 crore through share sale and expects this to complete by the year-end, probably through a qualified institutional placement (QIP).
Besides, Bank of Baroda and Central Bank of India plans to raise Rs 6,000 crores and Rs 65,000 crores from capital markets, respectively. Oriental Bank of Commerce and IDBI Bank have taken board’s approval for raising Rs 5,000 crores each through equity dilution, while Mumbai-based Union Bank of India plans to Rs 4,950 crores during the current fiscal.