Country's largest lender State Bank of India today said it was in a position to take its core capital to a comfortable level by itself, even as the government has "assured" infusion of up to Rs 4,000 crore this fiscal.
"Tier-I capital (the core component of a bank's capital base) is well poised to reach nine per cent by March," SBI Chairman Pratip Chaudhuri said.
When asked specifically if the bank would be in a position to achieve the desired level even if the infusion does not happen, he replied, "even then".
The bank had initially planned a Rs 20,000-crore rights issue, but it is yet to get the go ahead from the Government of India, which owns 59.40 per cent in the bank.
"There is a categorical assurance that the government is standing by with anything between Rs 3,000 and 4,000 crore for capital infusion in SBI itself during this fiscal," Chaudhuri said.
As of September 30, SBI's total capital adequacy stood at 11.4 per cent with the core Tier-I component at 7.47 per cent.
The government considers Tier-I capital below the 8 per cent mark as a concern and has already announced its intention to infuse additional capital in all the banks whose core Tier-I component is below the mark.
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