India’s largest State-owned bank, State Bank of India (SBI) on September 16 stated that it has recommended a cut in the cash reserve ratio (CRR), the amount of funds that the banks have to keep with the Reserve Bank of India (RBI) as well as in repo rate, the discount rate at which RBI repurchases government securities from the commercial banks. SBI said that it is expecting Rs 4,000-crore capital infusion from the government to shore up its capital.
The Union government mulls to infuse about Rs 14,000 crore of capital into banks in the current financial year (2013-14). Last financial year, SBI had got Rs 3,004 crore capital infusion from the government.
SBI Chairman Pratip Chaudhuri said this in Delhi. He added that all possible action is being taken to recover the loan given to defunct Kingfisher Airlines.