Rights Issue from State Bank of Bikaner and Jaipur (SBBJ)

In a communication to Bombay Stock Exchange (BSE), SBBJ has informed BSE that the Board of Directors of the bank at its Board Meeting held on October 8, 2010 approved raising of Rs 800 crore (including premium) of equity capital through a Rights Issue to the Shareholders of the Bank.

SBBJ is the largest associate bank of State Bank of India (SBI). SBI holds 75% equity in SBBJ and have to subscribe for 75% of rights issue at Rs 600 crores. In BSE the The Shares of the bank closed up at 3 percent at Rs 756, up by 3 per cent. Besides, SBBJ posted a 48 per cent rise in its net profit at Rs 127.52 crore in the second quarter of the 2010—11 fiscal. Against the net profit of of Rs 90.13 crore posted during the same period last year.

During the current quarter, the bank declared an interim dividend at Rs 7.2 per share for the financial year 2010—11. and for the half year ending September 30, 2010, SBBJ's net profit was Rs 230.66 crore.