SEBI Permitted SBBJ to raise Rs 800 crore through Rights Issue

Market regulator SEBI permitted State Bank of Bikaner and Jaipur (SBBJ) which is the largest associate bank of SBI, to raise up to Rs 800 crore through a rights issue. SBBJ filed its application with the regulator on 15 December 2010 to attain the permission. SBI which currently holds a 75 per cent stake in SBBJ will have to subscribe to 75 per cent of the rights issue to maintain its stake. For the half-year ending September 30, 2010, SBBJ's net profit was Rs 230.66 crore, the bank added. It declared an interim dividend of Rs 7.2 per share for the financial year based on the results.

SBBJ had posted a 48 per cent rise in net profit to Rs 127.52 crore for the second quarter of the 2010-11 fiscal. SBBJ had also reported a net profit of Rs 90.13 crore for the same period in 2009-10.