"There is a pattern now. The government is willing to give support provided the banks are able to service that support in the same manner in which SBI has done it," he said.
The country's largest lender SBI received Rs 9,995.99 crore through the subscription of the rights issue. Following, the successful completion of the process, other public sector banks are also looking at leveraging the option of rights issue as it is a cost effective tool for raising capital.
Speaking on the financial status of Central Bank, the Finance Minister said the top-line of the bank has shown high growth but the bottom line is not growing. Therefore, it is not able to increase capital adequacy ratio, he pointed.
The CAR of the bank is currently around 10.42 per cent which is expected to go up to 10.78 by the end of current fiscal.
The bank is expected to comply with the Basel II norms by the end of 2008-09.
He also said that the government is committed to keeping its share at no less than 51 per cent.
The bank is in the process of opening 200 branches, he said, adding the each branch is currently having a business of about Rs 54 lakh and with the expansion the bank would immediately get an additional business of about Rs 1,000 core.
