By IANS,
Kolkata: India’s biggest lender, State Bank of India (SBI) Saturday said it expects a capital infusion of Rs.30 to 40 billion in December this year or at the latest by March 2012.
“We are expecting Rs.3,000 crore to Rs.4,000 crore (capital infusion) in December or latest by March 2012. It will be common equity shares,” SBI chairman Pratip Choudhuri told reporters here.
Choudhuri, however, said it has not been decided yet by which route the capital infusion would take place.
“Let us see whether it is preferential equity or rights (issue). That is not decided. The government is sitting with the cash, but some final procedures are left,” he added.
The bank had reported a Tier-I capital adequacy ratio of 7.60 percent as of June 2011, against the suggested level of 8 percent.
The bank reportedly needs Rs.80 billion to maintain its capital adequacy ratio at eight percent.
The government is the largest shareholder of the SBI with an equity stake of 59.4 percent.