Kolkata, May 12 (UNI) State Bank of India (SBI) plans to raise Rs. 5,000 crore as private equity corpus for entering into venture capital business.
" We have shortlisted two to three players from among six esperienced ones we had been talking to for a venture capital company for which we need to raise Rs. 5,000 crore to meet the infrastructure costs. A final dicision is expected to be taken by July this year," SBI Chairman O P Bhatt told reporters here today while announcing the Bank's annual financial results for 2006-07.
In a separate move, the Bank would also go for capital infusion to the tune of Rs. 15,000 crore this fiscal to sustain its growth keeping open several options for the mode of funds mobilisation.
" We should require fresh capital between Rs. 14,000 and 15,000 crore through a mixture of debt and equity or some other way which we have not yet finalised. But the process should be over by December," the Chairman said.
Talking on the other new areas the Bank was about to step in, Mr Bhatt said, the SBI was planning to start general insurance business with a portion of the capital would come from foreign investment with SBI holding 76 per cent equity.
" There is a cap on foreign investment in such ventures. We have SBI Mutual Fund where the foreign participation is higher that what is stipulated. We are in talks with the Government on charting the way out for the general insurance business," he said.
The Bank also had plans to go for merchant acquisition, pension fund management activities and wealth management business, Mr Bhatt said.