Govt infuses Rs 3,004 cr into State Bank of India

After infusion, the government's shareholding in SBI increased to 62.31% from 61.58% earlier

State Bank of India, the country’s largest lender, today said it had received Rs 3,004 crore from the government as part of the recapitalisation plan of state-run banks.

After the infusion, the government’s shareholding in the bank has increased to 62.31 per cent, from 61.58 per cent earlier. The government infused the money through subscribing to preferential allotment of 12.9 million equity shares at Rs 2,312.78 a share.

“We are confident that with this capital infusion, we will meet the capital adequacy requirement prescribed by the Reserve Bank of India,” State Bank of India (SBI) said. Earlier, SBI Chairman Pratip Chaudhuri had said the bank was likely to attain a Tier-I capital of around 10 per cent by the end of the financial year with infusion from the government along with accrual of profits.

The government plans to infuse around Rs 14,000 crore in state-run banks this financial year to boost their core capital ratios, as they prepare to comply with the Basel-III guidelines, to start next month.