Monday, September 17, 2012

SBI may get Rs 4,000 crore capital support

New Delhi, September 16: The Finance Ministry is actively looking into a proposal to infuse Rs 4,000 crore in State Bank of India (SBI) to boost its capital base, and a decision in this regard would be taken in the next few months. “The bank has submitted its capital requirement plan and the Finance Ministry is considering the proposal of SBI for the capital infusion of about Rs 4,000 crore for the current fiscal,” official sources said.

Last fiscal; the government had infused Rs 7,900 crore in SBI to increase the Tier-I capital of the bank. Following the capital infusion in March 2012, the government holding in the bank rose to 61.58 per cent from 59.4 per cent. SBI had raised over Rs 16,000 crore through a rights issue in 2008. In the last SBI rights issue, government’s contribution was in the form of bonds instead of cash.

The government has already said it will infuse about Rs 15,500 crore in public sector banks during the current fiscal...


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