New Delhi: State Bank of India (SBI) on Thursday said it would raise Rs3,000-4,000 crore subordinate debt in the next financial year and is also looking at acquisitions in Africa, Asia besides at home.

"We are examining the use of Rs3,000-4,000 crore extra capital, which will be raised as subordinate debt during the next financial year," the SBI chairman, A K Purwar, told reporters yesterday.

SBI's associate banks have already raised Rs600-800 crore subordinate debt to meet the requirement.

"The credit growth this year has been exceptionally high at 26 per cent from January 2004 to January 2005. We will need more capital due to this credit growth," Purwar said.

He said the bank was also examining proposals for acquisition of small-to-medium sized banks in Africa, Asia and India. "We hope to finalise one or two more deals during the next financial year," he said.

Purwar said he expected the consolidation process to gain momentum. "We are looking at virtual merger of associate banks which will lead to common financial and accounting standards. A lot of virtual mergers is in the offing, but legal mergers will take some time," he said.