State Bank Of India

State Bank of India (SBI), the country’s largest lender is looking to get a capital infusion of up to Rs 6,000 crore in this fiscal from the government that will help the lender to increase its operations.

The government has already given commitment for providing adequate capital to public sector banks so as to maintain their tier-I capital at 8 percent. The Government of India, which holds 59.40 percent stake in SBI, has earmarked Rs 6,000 crore for the fiscal for capital infusion in public sector banks to ensure that they meet the regulatory requirements.

The capital infusion into SBI will put tier I capital at 9 percent. As of September, 2011, the capital adequacy ratio (CAR) of SBI stood at 11.4 percent. Of this, tier-I capital stood at 7.7 percent at the end of first quarter against minimum 8 percent level desired by the government.

The government had provided capital support to the tune of Rs 20,157 crore to public sector banks in 2010-11.

Earlier, SBI had submitted proposal some months ago to raise Rs 20,000 crore through a rights issue. The bank requires Rs 20,000 crore to fund its growth plans over the next two fiscals.