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State Bank of India on Tuesday said the government was expected to infuse capital into the bank in two tranches during the current financial year while it continues to explore the option of garnering capital by offloading a part of its investments in its subsidiary and some assets.
The bank has already made a presentation on capital requirements. Some equity from the government will come in this quarter and another round by end of the financial year, said its chairman Arundhari Bhattacharya.
As for the raising equity capital from the market, she said bank is ready with the plans. Country’s largest lender is also looking to unlock value from its investment in subsidiaries. The proceeds from these would help to boost capital base.
Talks are on for insurance ventures (part divestment) and valuations are underway. SBI also has a lot of assets on its book which could fetch it a good price, she said.
SBI’s capital adequacy was 12 per cent with tier I of 9.6 per cent at end of June 2015.
