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Govt seeks to list four SBI arms

By BS Economy Bureau in New Delhi
March 13, 2006 10:18 IST
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The road map for SBI's public issue is gaining momentum with the government currently evaluating the proposal to list the bank's four unlisted subsidiaries - State Bank of Patiala, State Bank of Hyderabad, State Bank of Saurashtra and State Bank of Indore.

"The proposal to list the unlisted banks is with the government. The public issue for SBI would come after that," said A K Purwar, chairman of SBI, on the sidelines of a FICCI seminar on economic growth. The government was expected to decide on the listing of the associate banks shortly.

SBI's shares would be split into lower denominations before the public issue so that retail investors can reap the benefits.

Purwar said the bank is considering a stock split and will also raise Rs 3,000-4,000 crore (Rs 30-40 billion) in debt in the next financial year. At present, the bank's share is priced at a face value of Rs 10 and the share is likely to be split to Rs 5 each.

SBI is also in talks to acquire a loss making bank in Bangladesh. "We will turn it around," Purwar said.

SBI has seven associate banks of which four - State Bank of Mysore, State Bank of Bikaner and Jaipur and State Bank of Travancore are listed. SBI and its associates are governed by the SBI Act and the SBI (Subsidiary Banks) Act.

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BS Economy Bureau in New Delhi
Source: source