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Rediff.com  » Business » SBI gets Rs 3,004 crore capital from govt

SBI gets Rs 3,004 crore capital from govt

March 19, 2013 16:18 IST

SBIState Bank of India said on Tuesday it has received Rs 3,004 crore (Rs 30.04 billion) from the government as part of the recapitalisation plan of the state-run banks.

Post-infusion, the share holding of the government in the bank has increased from 61.58 to 62.31 per cent.

According to the bank, the government infused the money through subscribing to preferential allotment of 1.29 crore (12.9 million) equity shares at the issue price of Rs 2,312.78 per share.

"We are confident that with this capital infusion, we will meet the capital adequacy requirement prescribed by Reserve Bank," SBI said.

Earlier, SBI Chairman Pratip Chaudhuri had said that the bank was likely to attain a tier-I capital of around 10 per cent by the end of the fiscal with capital infusion from the government along with accrual of profits.

Government plans to infuse around Rs 14,000 crore (Rs 140 billion) in state-run banks this fiscal to boost their core capital ratios as they prepare to comply with the Basel-III guidelines, which will start from next month.

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