State Bank Of India

The government is likely to support State Bank of India’s (SBI) Rs 20,000 crore right issue by contributing Rs 12,000 crore. At present, the government holds about 59% stake in the bank. The Country’s largest lender SBI is expected to raise Rs 20,000 crore by December 2011 via rights issue.

Further, the bank also plans to raise around Rs 40,000 crore in the next five-years to meet its lending requirements. This will be in addition to Tier II capital and in addition to retail earnings which account for Tier I capital. Recently, the bank has reported a fall of 98.88% in its fourth quarter net profit at Rs 20.88 crore whereas the same was at Rs 1866.60 crore for the quarter ended March 31, 2010. Its total income for the quarter under review has increased by 18.07% at Rs 26,536.84 crore whereas the same was at Rs 22,474.12 crore for the March quarter of the previous Fiscal.