SBI stake sale by Dec; to float NBFC

State Bank of India (SBI) is likely to go for a stake sale by December as part of its efforts to mobilise Rs 50,000 crore in the next three years.

"We are awaiting amendment to the SBI Act. We should be able to go for a stake sale by December," chairman O P Bhatt told reporters today.

The bank will also form a non-banking financial company (NBFC) to manage its insurance and asset management businesses for which details are being worked out, Bhatt said.

Bhatt also said that the issue of preferential shares was another option for raising capital, and it would be also considered once the amendment is through.

On the bank's inorganic growth plans, Bhatt said: "We have no plans as of now to acquire any bank. As far as our associate banks are concerned, the bank will look at both IPOs as well as mergers."

"We are awaiting the Presidential assent for the amendment. Once that is done in the next three-four months, the details will be worked out," he said, adding that the requirement of capital for its subsidiaries was around Rs 8,000 crore.

Bhatt said SBI would be forming joint venture for the NBFC, and is looking at both Indian and foreign partners. Regarding its listing, Bhatt said the bank would not sell more than 10% as the main purpose of the sale would be price discovery.