SBI expecting Rs 4,000 cr from govt this fiscal

Tags: News
State Bank of India today said it is expecting around Rs 4,000 crore infusion from government this fiscal that will ramp up its capital base to over 13 per cent.

"I think the government will give us capital and it should be around Rs 4,000 crore. What mode it will be, is a matter that is being discussed," Managing Director and Chief Financial Officer Diwakar Gupta told reporters here.

"We have given various options and it is the call of the government to decide how they would like to infuse the equity," he said at the CFO summit organised by accounting and consultancy major PwC.

The Rs 4,000-crore capital infusion is adequate for us as that can keep the capital base above 13 per cent, Gupta added.

At the end of the September quarter, SBI's capital adequacy ratio, a key indicator of a bank's financial strength expressed as a ratio of capital to risk-weighted assets, stood at 12.63 per cent, from 11.4 per cent in the year-ago quarter.

The government earlier this week had said it would finalise the capital infusion plans for its banks this week itself. The budget has earmarked nearly Rs 15,800 crore for shoring up the core capital base of the state-run lenders hit by bad loans and poor asset growth.

On the bank's rights issue, which has been pending for more than two years, Gupta said if they decide against it, they may consider other modes of issuing.

"A rights issue should mean something to the people who get it. If its only Rs 4,000 crore, then one share should get 19 or 20 shares through the rights issue, so it will be a very small issue. But rights issue is a fair way of offering capital. There are pros and cons and that is what is being evaluated," Gupta said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Amit Shah deserved to be crowned President of India, some say

    The Bharatiya Janata Party is now firmly in the hands of Modi’s alter ego, which in plain English means ‘another side of oneself, a second self’

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Necessary yet inadequate boost to education

The finance minister, in the very first minutes of his ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture