SBI expects another Rs.40 billion capital infusion

August 23rd, 2012 - 7:36 pm ICT by IANS  

State Bank of India Kolkata, Aug 23 (IANS) The State Bank of India (SBI) Thursday said its meeting with the central government on capital infusion could take place this week and that it expects Rs.4,000 crore (Rs.40 billion) infusion from the government.

The country’s largest public sector lender had earlier received close to Rs.8,000 crore (Rs.80 billion) from the government.

“They (government) have called us for a meeting which should happen this week and possibly another Rs.4,000 crore looks to be on the horizon,” SBI chairman Pratip Chaudhuri told media persons on the sidelines of a banking conclave organised by FICCI here.

At the end of March, the bank’s tier-I capital stood at 9.79 percent, while the total capital adequacy ratio was 13.86 percent.

Chaudhuri said the bank has taken several measures to bring downs its non-performing assets (NPAs).

“Whereever there are some companies which are having non-core assets, we are asking them to bring the cash. If the company is short of capital, we are asking them to get some private equity or get equity investors,” the chairman said.

“And if the company is asset free and cash poor, we are positioning more loans,” he said.

SBI recently appointed 20 credit appraisal experts from leading public sector companies to deal with the technical aspects of new projects.

Chaudhuri said there could be a contraction in NPAs for the bank in the second quarter of the current fiscal.

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