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However, the SBI chairman indicated that the Bank is unlikely to go in for a rights issue immediately as it has enough capital and good liquidity position at the moment
The country's largest lender, State Bank of India (SBI), would prefer a rights issue to raise funds for business growth rather than diluting government holding, its chairman OP Bhatt said on Wednesday, reports PTI.
"I want the government to continue to be the major stakeholder in SBI. If there is an opportunity to raise capital quickly and efficiently, we would like to do that (rights issue). It gives us a lot of flexibility in (the) future," Mr Bhatt told reporters in Mumbai.
The government recently tabled the SBI Act Amendment Bill in the Lok Sabha with an aim to reduce state-holding in the bank to 51% from around 59% now.
However, Mr Bhatt indicated that the Bank is unlikely to go in for a rights issue immediately as it has enough capital and good liquidity position at the moment.
SBI has a surplus liquidity of close to Rs50,000 crore, against Rs75,000 crore in December.
"I keep saying that we have a five-year perspective. We do not need capital immediately because our capital adequacy ratio is now around 14%," Mr Bhatt said.
On the merger of State Bank of Indore with the parent, Mr Bhatt said that the proposal needed to be cleared by the Government and Boards of both banks. The entire process may take over a month to get completed.
Private equity players in India have offloaded stakes worth $757 million in the first two months of this year driven by a significant recovery in the stock markets and hopes of continuation of this trend
Private equity (PE) players in India have offloaded stakes worth $757 million in the first two months of this year driven by a significant recovery in the stock markets and hopes of continuation of this trend, believe experts.
According to VCCEdge, the financial research platform of VCCircle, January 2010 saw 13 exits worth $282 million, while February witnessed as many as 10 worth $475 million.
"PE funds are under pressure to make some exits before they set out to raise new funds. They will continue to use every opportunity available to exit as long as they see a good return," VCCEdge research director Rohit Madan told PTI.
On a similar note, Reliance Venture Asset Management chief executive Harshal J Shah said, "I think this year will see the opening of the floodgates for exits, though only for the highly qualified ones, and those which have been waiting patiently in the wings for a long time now."
Mr Shah further said that the companies which were waiting in the pipeline might hit the markets this year.
"As the foundation for a strong global recovery builds up, perhaps led by India and China, the performance of the markets this year for such initial public offerings (IPOs) will also portend or forecast how successful that trend will be into the next year and beyond," Mr Shah added.
According to SMC Capitals Equity Head Jagannadham Thunuguntla, "The strange part of the 2009 recovery was that it was very strong in the secondary markets. However, the same enthusiasm couldn't be seen in the primary markets, that is, IPOs. Hence, exits can definitely happen. Unless the enthusiasm returns in the primary markets, the PE/VC funds may find it difficult even to exit."
Some of the top private equity exits of this year include the $323-million exit by Siva Ventures from Aamby Valley Ltd and the $62-million exit by Nalanda Capital from Sun TV Network, the VCCEdge report said.
The PE exits were driven by the sharp rise in the Bombay Stock Exchange's benchmark index Sensex, which is currently hovering around the 17,000-level and is witnessing good participation both from domestic as well as foreign institutional investors.
The arrest of the American woman comes in the backdrop of US ambassador to Pakistan Anne Patterson commenting that the Obama administration does not know how many Americans might have disappeared overseas to train with al-Qaeda or other terrorist groups
An American woman, operating online under the name 'Jihad Jane', was indicted on Wednesday for plotting to recruit jihadist fighters for executing terror attacks in South Asia and Europe, reports PTI.
The middle-aged Pennsylvania resident Colleen R LaRose alias Fatima LaRose was arrested in October last year and charged with spending more than a year networking with would-be jihadists around the world.
She was charged on four counts—conspiracy to provide support to terrorists, a count to kill in a foreign country, indulging in identity thefts and making false statements.
"The case demonstrates that terrorists are looking for Americans to join them in their cause and it shatters any lingering thoughts that one can spot a terrorist on an appearance," US attorney Michael Levy said in the 11-page indictment unsealed in Philadelphia.
The charging of ‘Jihad Jane’ comes months after another Pakistani-American national David Coleman Headley was charged with plotting terrorist attacks in India and Denmark.
Ms LaRose’s associate, said to be based in South Asia, was not named but identified in the court by his online identity ‘CC#3’. It was this individual, the court was told, who directed her to kill Swedish cartoonist Lars Vilk.
An al-Qaeda affiliated group has put a bounty of $100,000 on Mr Vilk's head for a blasphemous cartoon of the Prophet Mohammed.
Forty-seven-year-old Jihad Jane and David Headley were both arrested from the same place. The arrest of the blond all-American woman comes in the backdrop of US ambassador to Pakistan Anne Patterson commenting that the Obama administration does not know how many Americans might have disappeared overseas to train with al-Qaeda or other terrorist groups.
The number is not thought to be large, but Ms Patterson said a “nightmare scenario” would unfold if people holding US passports receive terrorist training and then return legally to the US to commit acts of violence. The US justice department said that the five unindicted co-conspirators are from South Asia, Eastern Europe, Western Europe and the United States.
According to the indictment, Ms LaRose travelled to Europe and tracked the intended target online in an effort to complete her task. She even asked for resident status in Sweden.
If convicted of the charges, Ms LaRose faces a potential sentence of life in prison and a $1 million fine.
She was “desperate to do something” to help suffering Muslims, authorities said, adding that her case shows how terror groups are looking to recruit Americans to carry out their goals.
A US department of justice spokesman wouldn't confirm if the case is related to a group of people arrested in Ireland earlier yesterday on suspicion of plotting against Mr Vilk.