"SBI will need something like Rs 12,000 crore or Rs 120 billion (to achieve eight per cent capital adequacy). Internal accrual will be around Rs 7,500 to Rs 9,000 crore (Rs 75 billion to Rs 90 billion). . .so the gap (of Rs 3,000 crore-4,500 crore or Rs 30-45 billion) will certainly have to be funded by us," Financial Services Secretary D K Mittal said on Tuesday.
The process of capital infusion in SBI, he added, would be completed by December or maximum by March-end.
Asked whether the capital infusion would be through a rights issue, he said, "(SBI) may not be going for public issue or rights issue. This may not be the right time to raise money from the market".
The government, he added, 'is looking at various options to capitalise SBI, which will be slightly innovative...public sector banks would fully capitalised'.
The government, which holds 59 per cent stake in the bank, will have to pump in more capital to enable it to expand its business and maintain Tier-I (equity)
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