The street feels that RBI needs to intervene further, as liquidity is about to get strained.
Tagged as a sleepy, regional lender till a few years earlier, the bank's stock was not much talked about in the investors' community.
They need money as Rs 100,000 cr deposits will mature by December.
Chidambaram also asks these not to rush for bulk deposits to bloat balance sheets.
Despite sluggish credit growth, most banks are cautious about growing their unsecured loan portfolio.
Banks offering a higher rate on savings bank deposits have seen robust growth in the past year but the momentum might get slower as interest rates turn more benign.
SBI's home loan portfolio has recorded a 73.86 per cent growth against Rs 623.38 billion as on September 30, 2009
NPA percentage in loans may touch 10% by March 2013, up from 5% in March 2011.
Move significant as new banking licences under his purview.
The Reserve Bank of India (RBI) has asked banks not to treat Kingfisher Airlines' brand as collateral since it is intangible. This is because the loan has turned non-performing for most of the banks.
Seek easing of asset classification guidelines for better credit flow.
The sources said the ministry had agreed with the RBI's views that at a time when the country had a high fiscal deficit, the move might not be appropriate.
In a recent communication to the bank chiefs, the ministry has said all such loans to the corporate sector can be sanctioned only after board approval and need to be backed by securities within six months of sanctioning, failing which the loan would need to be phased out.
It had asked govt banks to reduce these and certificates of deposits to a combined 15% of total deposits
Lender to acquire 30% after existing shareholders divest stake
According to sources, the central bank is keen on such a scheme to attract foreign exchange, as the country's reserves have seen a depletion in the wake of a weakening domestic currency.
Ministry says capital infusion if loans extended only to productive sectors
High crude oil prices, which the central bank perceives as a risk to inflation, may limit the extent of rate cut to 25 basis points rather than 50 bps, economists said.
SBI keeps IDBI waiting for proposal to set up infra development fund
In January, banks had rejected SBI Caps' initial proposal on Air India's debt recast, which suggested converting a part of the carrier's debt into cumulative redeemable preference shares, with an eight per cent dividend.
