SBI may not raise funds overseas this quarter, says MD

Mumbai, Nov. 14: State Bank of India is unlikely to raise funds from overseas markets in the October-December quarter, given the current liquidity and market conditions.

Market conditions are not conducive for raising funds, said Mr Hemant Contractor, Managing Director, International Banking Group. However, the bank may raise funds in the January-March quarter, he said, while speaking to newspersons at the India Economic Summit 2011, in Mumbai, on Monday.

On the likely issue size, he said that it will not be a small issue. The bank had doubled the size of its Medium Term Note programme to $10 billion earlier this year.

About SBI's exposure to the Euro-zone, Mr Contractor said the bank has sanctioned some short-term trade finance to countries such as the UK, Germany and Italy, but has no exposure to Greece.

With regard to domestic fund-raising, the bank is awaiting word from the Government about capital infusion, Mr Contractor said.

Recently, Mr Pratip Chaudhuri, Chairman, SBI, had said that there is a ‘categorical assurance' from the Government that it will infuse Rs 3,000-4,000 crore into the bank.

SBI's core capital is at 7.47 per cent, below the 8 per cent the Government requires public sector banks to maintain. SBI requires about Rs 40,000 crore over the next three years to support loan growth.