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.


  • All the debates are glossing over the key question if children are eating healthy food

    For some time now, we have been strapped in noodle debates. First Maggie noodles and now our own swadeshi noodles that Baba Ramdev is making.


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Amita Sharma

Smart cities for the smart citizens

The 21st century has been spoken of as the urban ...

Zehra Naqvi

Baby and you

Every person who’s had a chance to be a parent ...

Bubbles Sabharwal

Women of the world, unite for a change

Last week I attended the Women in the World forum ...


William D. Green

Chairman & CEO, Accenture