BackGovt to infuse upto Rs8,000 crore in SBI by March
Govt to infuse upto Rs8,000 crore in SBI by March
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New Delhi: The government will infuse Rs4,500 crore to Rs8,000 crore ($919.7 million to $1.6 billion) of funds in top lender State Bank of India (SBI) by March 2012, D.K. Mittal, secretary of financial services said on Thursday.
SBI expects surpluses earned during the year, apart from government funds, to help boost its Tier-I capital to 9%.
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Its Tier 1 capital was 7.6% at the end of June, below the government’s pledged 8% target in state banks.
Last week, ratings agency Moody’s downgraded SBI’s standalone rating to D+ from C- on a scale of A to E, citing low Tier 1 capital, its recent failure to raise capital and worsening asset quality.
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