Earning My Money

BY  ANKIT KUMAR

The government today said it will take a call within a fortnight on whether SBI should be allowed to go for the rights issue, which is expected to be in the range of Rs 18,000-21,000 crore, less than the original estimate.
"We are number crunching that (SBI proposal of Rs 20,000 crore rights issue) at this point of time. I think some decision would be taken perhaps in next 15 days," financial services secretary R Gopalan said on the sidelines of an event by consultant Skoch hereHe said the presumptions under which the additional requirement has been asked for are being looked into by the government.
    
"So, amount in any case is dependent on what we arrive at along with SBI. As to how valid those presumptions are, so that exercise is on at this point of time," Gopalan said.
    
"So once that is there, the next question is what form will we be doing in. That is also being discussed with SBI," he added.
    
The government holds about 59 per cent stake in SBI. If it clears the proposal, the government will have to subscribe the issue to the extent of its holding, so as to maintain its stakeholding at the existing level.
    
Depending on the decision taken, Gopalan said there could be implications on the budget.
    
"There can be implications on budget or it can be neutral on budget, so we will take a view," he said.
    
If the Government decides to subscribe to the rights issue in cash, it will have to go for additional expenditure. However, if it decides to subscribe the issue through bonds, the effect may be felt later.