State Bank of India (SBI), ruling out the possibility of coming out with a rights issue, is planning to raise about Rs 3,000 crore through preference shares in the next 3 months. This move is a part of the capital infusion plan for the Public Sector Banks (PSBs) for 2012-13. The Finance Ministry has recently given nod to allocation of Rs 12,000 crore for various public sector banks including SBI. However, the fund allocation to various banks would only be made in due course of time after the required approvals are obtained.
Back in December, in a move to boost the bank’s capital base, the government has approved fund infusion of Rs 3,004 crore in State Bank of India (SBI) during the current fiscal. Last fiscal, the government had infused Rs 7,900 crore in SBI to increase the Tier-I capital of the country's largest bank.
