State Bank of Bikaner and Jaipur (SBBJ), the largest associate bank of SBI, has approached the market regulator Sebi for approval of the bank's Rs 800 crore rights issue.
Earlier this month, the board of directors of the bank had approved the draft letter of offer for raising equity capital to the extent of Rs 800 crore through rights issue.
According to Sebi, the bank had approached the market regulator last week.
SBI currently, holds 75 per cent stake in SBBJ and thereby, would have to subscribe 75 per cent of the rights issue.
SBBJ posted a 48 per cent rise in its net profit at Rs 127.52 crore in the second quarter of the 2010-11 fiscal. The lender had a net profit of Rs 90.13 crore during the same period last fiscal.
For the half-year ending September 30, 2010, SBBJ's net profit was Rs 230.66 crore, the bank added. Also, during this quarter, it declared an interim dividend at Rs 7.2 per share for the financial year.
Shares of the bank closed at Rs 641.15, up by 0.23 per cent on the Bombay Stock Exchange.
