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Thursday, August 9, 2012

No proposal of SBI to raise funds via FPO pending: Govt

No proposal of State Bank of India to raise funds through public offer is pending and the government is committed to keep public sector banks adequately capitalised, Minister of State for Finance Namo Narain Meena said on Wednesday.

“At present, there is no proposal pending with the Government to mobilise money by SBI by issue of shares,” Minister of State for Finance Namo Narain Meena said in a written reply in Lok Sabha.

He also said the Centre is fully committed to keep PSBs, including SBI adequately capitalised.

The government had infused Rs 7,900 crore in SBI to increase the Tier I capital of the bank in March 2012.

The minister said that the bank’s Capital Adequacy Ratio (minimum capital requirement norm) is well above the norms stipulated by the Reserve Bank of India (RBI).

In March 2012, SBI Chairman Pratip Chaudhuri had said that in 2012—13 the bank would discuss with the government for dilution of its stake through follow—on—public offer (FPO) or Qualified Institutional Placement (QIP).

Despite increase in the bank’s net non-performing assets to 1.82 per cent at March 2012 end against 1.63 per cent a year ago period, Meena said the financial condition of the country’s largest bank “continues to be stable“.

“There is no reduction in profit. In fact, net profit of SBI has increased by 41.66 per cent over the previous year,” he added.


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