SBI set for Rs3,004 crore capital infusion

State Bank of India (SBI) will get dditional capital of Rs3,004 crore as part of the government's capital infusion plan for the current fiscal.

The board of directors of SBI approved a capital injection of Rs3,004 crore by the government through preferential allotment of shares in the current fiscal year.

"The central board of the bank in its meeting today has approved infusion of capital funds in the bank by the Government of India to the tune of Rs3,004 crore during
2012-13," SBI said in a filing with the stock exchanges.

The funds will be used to support local and international banking operations, and the bank is seeking separate approvals from the government and India's central bank to raise its issued capital, it added.

The proposal is subject to necessary regulatory approvals, it said.

Last fiscal, the government had infused Rs7,900 crore in SBI to increase the Tier-I capital of the country's largest bank.

Following the capital infusion in March 2012, the government holding in SBI rose to 61.58 per cent from 59.4 per cent.

The government approved infusion of Rs12,517 crore in around 10 state-owned banks by March.

Last fiscal, the government pumped in about Rs12,000 crore additional in public sector banks as against Rs20,117 crore in 2010-11.