Press trust of India, NDTV Profit

Market regulator SEBI has given the nod for State Bank of Bikaner and Jaipur (SBBJ), the largest associate bank of SBI, to raise up to Rs. 800 crore through a rights issue.

According to Securities and Exchange Board of India (SEBI) data, SBBJ filed its application with the regulator on December 15 last year. In December, 2010, the board of directors of the bank had approved a draft letter of offer for raising Rs. 800 crore through a rights issue.

SBI currently holds a 75 per cent stake in SBBJ and therefore, will have to subscribe to 75 per cent of the rights issue to maintain its stake.  SBBJ posted a 48 per cent rise in net profit to Rs. 127.52 crore for the second quarter of the 2010-11 fiscal. The lender had reported a net profit of Rs. 90.13 crore for the same period in the previous fiscal.

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.

Shares of the bankwere trading at Rs. 526.15 on the Bombay Stock Exchange today, down 1.31 per cent from their previous close.