Centre's Rs 7,900-cr infusion to put SBI on a better footing

The government has agreed to infuse a maximum of Rs 7,900 crore into the country's largest lender State Bank of India, but has not indicated a time frame by when the money will come. The actual infusion into the bank in the current year is likely to be less, depending on what the bank needs to achieve a tier-I capital adequacy ratio of 8%. Financial Services Secretary DK Mittal said as of now the government has only given the administrative approval as required under the SBI Act to infuse more capital into the bank. "It is not the financial sanction (of Rs 7,900 crore). It is the approval as required from the central government to infuse capital in the bank. SBI will be fully capitalised," he said.

Source: Economic Times