State Bank of India has received Rs. 3,004 crore from the government as part of the recapitalisation plan of the state-run banks, the country’s largest lender said on Tuesday.
Post the infusion, the shareholding of the government in the bank 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 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,” State Bank of India (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 year with capital infusion from the government along with accrual of profits.
The government plans to infuse around Rs. 14,000 crore in state-run banks this fiscal to boost their core capital ratios as they prepare to comply with the Basel-III guidelines, which will be implemented from next month.
Source: NDTV Profit