State Bank of India (SBI) chairman Pratip Chaudhuri on Saturday said the government will infuse R4,000 crore into the bank this year, either by way of a preferential allotment or through a rights issue. The amount committed is less than the R10,000 crore the lender was expecting from the government by March 2012. Speaking on the sidelines of Bancon 2011, Chaudhuri said the bank will require anywhere between R30,000 and R40,000 crore over the next three years. ?The capital will come partly from internal accruals, partly from non-government shareholders and also from the economising of capital,? he said, adding that the mode of infusion of the R4,000 crore of capital this year vests with the government, the bank?s largest shareholder. SBI, whose Tier-I capital adequacy ratio (CAR) stood at 7.60% as at the end of June 2011, will need a minimum of R3,000 crore to shore up Tier-I CAR to 9%, said Chaudhuri.
Govt to infuse R4,000 cr into SBI this year
State Bank of India chairman Pratip Chaudhuri on Saturday said the government will infuse R4,000 crore into the bank this year, either by way of a preferential allotment or through a rights issue.
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This article was first uploaded on November six, twenty eleven, at four minutes past three in the night.