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Indian government exceeds SBI CFO's expectations

Mumbai-based SBI will receive 60 billion rupees.

As anticipated by analysts and executives at the massive lender, the Indian government has agreed to a major infusion of assets into the State Bank of India, according to the Business Standard as cited by The Wall Street Journal.

Reuters reported in the morning that the bank's chief financial officer, Diwakar Gupta, had expressed his confidence that the government would quickly come out with exact numbers to help boost the bank's capital reserves.

"We have received formal confirmation from the government that capital is on way," the CFO told Reuters. "It is expected any time."

Gupta noted that he expected Tier-1 capital, which will face stricter requirements under the upcoming Basel III standards, would rise to 8 percent, after sitting at 7.47 percent in September.

The government ultimately chose to funnel 60 billion rupees to the struggling bank, raising its Tier-1 capital levels to 9 percent and increasing the government's stake in the institution to 64 percent.

The bank still faces steep capital needs, requiring as much as 400 billion rupees over the next three years, particularly as the new capital rules come into effect.

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