In a move that raised the shareholding of government in State Bank of India (SBI) to 62.31 per cent from 61.58 per cent, the centre infused Rs 3,004 crore capital into the bank.
The countryÂ’s largest lender, in return, alloted 12.9 million preferential equity shares at Rs 2,312.78 a share to the government.
In a statement, SBI said the capital infusion would enable the bank to meet the capital adequacy requirement prescribed by the Reserve Bank of India. 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.
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