NEWS & ADVICE : CAR LOANS
SBI expects recapitalization by March'12
By Vaibhav Aggarwal
Nov 3, 2011
Print    Email    RSS   

The largest lender of the country, State Bank of India expects funds to be pumped into it by the government by March 2012. The bank said that it has been assured by the Finance Ministry of adequate capital being pumped in though the path for infusion is yet to be decided.

Chairman of the bank, Mr Pratip Chaudhuri quoted, "Whether it would be a rights issue, preferential or QIP route... It is still not decided."

"But one thing has been confirmed through the finance secretary that the bank would be adequately capitalised by 2012," said Chaudhuri.

"Our tier-I capital had dropped to 7.6% against desired requirement of 8%... We need to grow and in doing that we need to increase our tier-I and the government of India is convinced," he said stating the need for capital infusion.

Speaking about government's shareholding in SBI, he said, "Our issue is that the government has to take a call what level of ownership it wants to maintain in the bank. If it wants to have 59.4% stake in SBI, then it would be a rights issue."

"If it [the stake] is to be raised from the level of 59.4%, then it would be a preferential issue and if it has to be lowered, then it has to be through a QIP issue."


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
A chronicle of excesses by loan recovery...
Used Car Loan Melas in India
How good are floating rate car loans?
This is how a bank lends money
Carnival of Indian Personal Finance Blogs # 8


CAR LOAN STETMENT
Hello I am looking to renew my car insurance and I...
my loan no

NEWS THIS WEEK
SBH bank extended its Car and gold loan campaign till 31st March, 2015. Feb 11, 2015
KVGB bank signed MOU with TATA Motors Feb 10, 2015
SBH bank extended its scheme offering concession to loan defaulters Feb 2, 2015
Karnataka Bank tied up with TVS motors to Assist Auto rickshaw buyers Jan 27, 2015
RBI extended the Directions issued to Amanath Co-operative Bank for a period of six months Jan 22, 2015
News Archive