While attending a banking event, the Chairman of State Bank of India, Mr. Pratip Chaudhuri said that the bank aims to acquire a loan of $ 1 billion to $ 2 billion from foreign market. The loan will be acquired within the next three months.
Mr. Chaudhari did not provide any explanation regarding the pricing or from where the bank would take the loan.
State Bank of India has doubled its amount of borrowings to $ 10 billion dollars, from what it was last year. But it is yet to start with the fundraising owing to the bad market conditions.
It is to be noted that last October, Moody's Investor Service had lowered the bank's rank owing to its poor capital base and unsatisfactory quality of its assets.
But since then, things seem to have improved. The Indian government gave it a 79 billion rupees bail out in March and the bank also achieved higher profits which helped to boost its CRR. The bank also started giving increased importance to recoveries and detection of bad loans to augment its asset quality.