Country's largest lender, State Bank of India aims to raise Rs. 20,000 crore via rights issue by the end of this financial year.

"It is still at the conversation stage (with the government)... If at all it comes up, may be it would be coming up towards the end of this fiscal year," SBI chairman OP Bhatt said.

He also said that the bank would be witnessing tight liquidity status in June owing to payment towards 3G spectrum auction. "However, the liquidity position should ease by next month," he said.

The banking major had earlier hinted that it might raise capital worth Rs.70,000 crore in the upcoming five years via rights issue for expansion and consolidation purposes.

"We need capital for growth and there are various options of raising capital such as follow-on-offer, rights issue or preferential issue. Our preferred option will be the rights issue," Mr Bhatt had said.