Mumbai: Recapitalisation measures at State Bank of India , the country’s top lender, are likely to be completed by March 2012, its chairman said on Wednesday, a day after Moody’s cut the bank’s ratings.
“I think it is a reminder to the bank and all the shareholders that recapitalisation measures of SBI acquire greater urgency,” Pratip Chaudhuri said.
File photo of PratipChaudhuri, chairman of State Bank of India. Abhijit Bhatlekar/Mint
Moody’s on Tuesday downgraded the standalone rating for State Bank of India, citing “modest” capital and weakening asset quality.
“We have taken note of this message and recapitalisation, we are hopeful, will be completed by the end of December 2011 and at the most, if it is stretched, it will go to March,” Chaudhuri said.
“By that time we would also have our surpluses earned during the year plus if compensated and supplemented by the rights issue, would put the total Tier 1 level of the bank at 9% of the risk weighted assets,” he told reporters.