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SBI can't sponsor infra fund

Infrastructure Finance
September 1, 2011September 1, 2011
SBI can't sponsor infra fund
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State Bank of India (SBI) can't set up a new unit to run the operation owing to a regulatory hurdle. This may delay the government's plan to float infrastructure funds. Under current regulations, the total equity capital of a bank's units and joint ventures can't exceed 20 per cent of the sum of its paid-up equity capital and reserves. SBI has hit the 20 per cent cap on exposure to subsidiaries.

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