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State Bank of India (SBI) has been allowed by the Government to raise equity capital up to Rs, 15,000/- crores by way of FPO/Right Issue/ESPS/ESOS/QIP/ADR/GDR/any other mode or a combination of these.
In this regard, the shareholders’ approval was obtained n the General Meeting of shareholders held on 26.2.2016.
The Capital Adequacy Ratio for SBI as on 31st December, 2015 is 12.45% as against the RBI prescription of 12.10% as on 31st March, 2019 as per Basel III transitional arrangement. However, the additional capital raised/to be raised will help the Bank for meeting credit growth.
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha.
Equity capital raising authorized for bank permits multiple issuance modes to bolster capital and support credit growth. Government authorization permits State Bank of India to raise equity capital by various issuance mechanisms, with shareholder approval obtained on 26 February 2016. The bank reported a Capital Adequacy Ratio of 12.45% as of 31 December 2015 against the Basel III transitional benchmark of 12.10% as of 31 March 2019, and the additional equity is stated to support credit growth.Press 'Enter' after typing page number.