By BS Reporter
The State Bank of India (SBI) board has approved a capital infusion of Rs 3,004 crore by the government through preferential allotment of shares. The infusion would help the bank shore up its tier-I capital. As of September-end, the bank's capital adequacy ratio was 12.63 per cent, including tier-I capital of 8.97 per cent.
The government's equity infusion is part of enhancing the bank's capital base under Basel-III norms, effective April 1. On January 10, the government had cleared first tranche of the Rs 12,517-crore capital an infusion into public sector banks. The Cabinet had approved infusion of Rs 3,004 crore for SBI.
Yesterday, the SBI stock closed at Rs 2,491.20 on the BSE, a rise of 0.93 per cent over the previous close.