The government has agreed to infuse fresh capital into State Bank of India (SBI) through a preferential issue and the country's largest lender will get up to Rs6,000 crore before the fiscal-end, Chairman Pratip Chaudhuri said.
'We will be having a preferential issue and will be getting capital through it,' Mr Chaudhuri said.
About the quantum of the infusion, he said, 'The size will be Rs5,000 to Rs6,000 crore.'
He did not give any specific indication about the timing of the issue, though he said it will happen before March 31.
SBI's total capital adequacy ratio stood at 11.4% as of the September quarter, of which core tier-I capital stood at 7.7%, below the 8%-level desired by the government.
It had first announced its intention to raise up to Rs20,000 crore through a rights issue over a year ago, but the government, which holds a 59.4% stake in the lender, has delayed the proposal as it will have to subscribe to almost two-thirds of the money.
For the past three months, the SBI brass has been realistically pegging the capital infusion size at around Rs6,000 crore. Last month, Chief Financial Officer Diwakar Gupta said an infusion may happen 'any time', while Chaudhuri last week said he has received a letter from the Finance Ministry on recapitalisation.
The recapitalisation will take the bank's Tier-I capital ratio to over 9%, he had said.
A slew of lenders, including Bank of Baroda, Bank of Maharashtra and Union Bank have made similar announcements in the recent past. Bank of Baroda would be getting Rs775 crore this fiscal, while Bank of Maharashtra is ready for an Rs860 crore preferential issue.....more info
'We will be having a preferential issue and will be getting capital through it,' Mr Chaudhuri said.
About the quantum of the infusion, he said, 'The size will be Rs5,000 to Rs6,000 crore.'
He did not give any specific indication about the timing of the issue, though he said it will happen before March 31.
SBI's total capital adequacy ratio stood at 11.4% as of the September quarter, of which core tier-I capital stood at 7.7%, below the 8%-level desired by the government.
It had first announced its intention to raise up to Rs20,000 crore through a rights issue over a year ago, but the government, which holds a 59.4% stake in the lender, has delayed the proposal as it will have to subscribe to almost two-thirds of the money.
For the past three months, the SBI brass has been realistically pegging the capital infusion size at around Rs6,000 crore. Last month, Chief Financial Officer Diwakar Gupta said an infusion may happen 'any time', while Chaudhuri last week said he has received a letter from the Finance Ministry on recapitalisation.
The recapitalisation will take the bank's Tier-I capital ratio to over 9%, he had said.
A slew of lenders, including Bank of Baroda, Bank of Maharashtra and Union Bank have made similar announcements in the recent past. Bank of Baroda would be getting Rs775 crore this fiscal, while Bank of Maharashtra is ready for an Rs860 crore preferential issue.....more info