State Bank of India, the country’s biggest lender plans to raise about Rs 89,600 crore as capital fund in the next five years. In a written reply in the Lok Sabha, Pawan Kumar Bansal, minister of state for finance said, “Based on the sensitivity analysis of its capital position, capital augmentation programme of SBI envisages raising about Rs 89,600 crore as capital funds during the next five years.”

Mr. Bansal told that the boards of public sector banking institutions are capable to make decisions on the subject of raising capital funds, apart from equity capital for which prior government sanction is required.

In order to tap chances in the international carbon trading market, SBI has signed up a MoU with three Clean Development Mechanism (CDM) consultants.

MITCON Consultancy Services, Ecosecurities India and CantorCO2e India are conjointly offering solutions to business industries for CDM projects.

Mr. Bansal also said that Lord Krishna Bank, which coalesced with the Centurion Bank of Punjab with effect from August 29, was put under the Quarterly Monitoring System and subsequently under monthly monitoring since April, 2001.

In a separate reply, Minister of State for Finance S S Palanimanickam said the management has received suggestion on removal of excise duty exemption from states, which presently enjoy it for manufacturing drugs.