State Bank of Bikaner and Jaipur (SBBJ), the largest associate bank of SBI, today said its board has cleared the proposal of raising Rs 780 crore through a rights issue.
The board of directors of the bank have fixed March 17 as record date for the purpose of ascertaining shareholders entiled for rights issue, SBBJ informed the Bombay Stock Exchange (BSE).
The bank has proposed to issue equity shares on a rights basis in the ratio of 2 scrip for every 5 shares held at a price of Rs 390 per shares fully paid up, it said.
"The objects of the issue are to augment our capital base to meet the capital requirements and growth in our assets, primarily our loans and investment portfolio," it said.
SBI currently holds 75% stake in SBBJ and thereby, would have to subscribe 75% of the rights issue.
For the third quarter ended December 2010, SBBJ has posted an over two-fold increase in its net profit at Rs 132.4 crore as against Rs 51.2 crore during the corresponding period in 2009.
The total income of the bank increased to Rs 1,351.8 crore as against Rs 1,105.6 crore in the year-ago period.
For the nine months ended December 2010, SBBJ's net profit rose to Rs 363.1 compared to Rs 233.6 crore in the same period a year ago.
Shares of the bank closed at Rs 627.10, up by 1.51% on the BSE.
