State Bank of India (SBI), country’s largest public sector lender has reportedly required Rs 2,30,000 crore additional capital in order to meet the stringent Basel III requirements till 2018. Out of this, Rs 1,50,000 crore is of tier I and the rest Rs 80,000 in tier II capital. It is confidence that the lender will be able to manage this huge amount.
The bank will collect upwards of Rs 20,000 crore for this fiscal, which will include infusion from the government, from the market as well as from internal accruals. The government is likely to infuse Rs 4,000 crore into the bank this fiscal out of the Rs 14,000 crore planned towards recapitalizing the nationalized banks this fiscal.
