SBI seeks between Rs 50 billion-Rs 150 billion capital infusion from government

MUMBAI: State Bank of India ( SBI) , the country's top lender, has sought a capital infusion of between 50 billion and 150 billion rupees ($1.1 billion-$3.3 billion) from the government, its chairman said.

The state-run lender needs funds to meet its future credit growth requirement.

"We have not zeroed in the number. The number that we have put on the table is between 50 to 150 billion rupees from the government...and simultaneously through internal accruals," Pratip Chaudhuri told reporters on Thursday.

"It may come in (tranches) ... It may come in one go. It will depend upon what government wants."

He said the bank will need 200 billion-230 billion rupees capital.

"It will be required for capital. Part of it will come from internal accruals. Those details are being worked on," he said.

State Bank of India also needs to pass on last month's 50 basis points hike in interest rates by the RBI to its depositors and borrowers, he added.

RBI stunned investors by raising interest rates by 50 basis points, showing unexpected resolve in fighting persistently high inflation despite slowing growth in Asia's third-largest economy and uncertain global demand.

Source: EconomicTimes