INSUBCONTINENT EXCLUSIVE:
By Crystal Tse and Anto AntonyState Bank of India, country’s largest lender, has selected underwriters for an institutional share sale
that could raise at least 100 billion rupees ($1.4 billion), people with knowledge of matter said.
The government-run lender picked Bank of
and HSBC Holdings Plc to arrange offering, according to people, who asked not to be identified because information is private
and SBI Capital Markets Ltd
were also chosen to work on deal, people said.
SBI’s sale will help bolster its capital buffers as it attempts to grow loans at a faster
Credit growth in India’s banking system is rising at fastest pace in five years after a cash crunch in 2018 curtailed new loans from
shadow financiers.
The deal will add to $11.8 billion raised through equity offerings in India over past 12 months, according to data
Terms of offering haven’t been finalized, and details such as fundraising target could change, people said
SBI’s board granted approval in October for an equity offering of as much as 200 billion rupees.
A representative for SBI didn’t
immediately respond to a request for comment.
