SBI to raise about Rs 89,600cr in next 5 yrs

The country's largest lender State Bank of India (SBI) plans to raise around Rs 89,600 crore as capital fund in the next five years.

"Based on the sensitivity analysis of its capital position, capital augmentation programme of SBI envisages raising about Rs 89,600 crore as capital funds during the next five years," minister of state for finance Pawan Kumar Bansal today said in a written reply in the Lok Sabha.

He said the boards of public sector banks are competent to take decisions regarding raising capital funds, except equity capital for which prior approval of the government is needed.

To tap opportunities in the global carbon trading market, SBI has entered into an MoU with three Clean Development Mechanism (CDM) consultants, Bansal said.

MITCON Consultancy Services, Ecosecurities India and CantorCO2e India are jointly providing solutions to industries for CDM projects, he added.

In reply to another question, Bansal said Lord Krishna Bank, which merged with the Centurion Bank of Punjab with effect from August 29, was put under the Quarterly Monitoring System and subsequently under monthly monitoring since April, 2001.

In a separate reply, Minister of State for Finance S S Palanimanickam said the government has received suggestion on withdrawal of excise duty exemption from states that currently enjoy it for manufacturing drugs.