MD says
SBI is comfortable in terms of capital and has no plans of raising funds as of
now
Mumbai:
The five associate banks of State Bank of India (SBI) do not require any additional
capital infusion this fiscal as the credit growth is tepid, a top official
said.
He, however, added that the associate banks
collectively need up to Rs.30,000 crore in capital over the next five years as
they gear up for the higher capital Basel-III regime. “As of now, we are
comfortable in terms of capital. No plans of raising funds as of now.
There is no credit growth in the market,”
State Bank of India (SBI) managing director (MD) and group executive for
associates and subsidiaries V.G. Kannan told reporters in New Delhi over the
weekend.
He
said that the five associates—State Bank of Mysore, State Bank of Patiala,
State Bank of Travancore, State Bank of Hyderabad and State Bank of Bikaner and
Jaipur—collectively need up to Rs.30,000 crore in capital over the next five
years as they gear up for the higher capital Basel-III regime.
However,
Kannan declined to comment about old speculation that associate banks would be
merged with the main parent bank SBI. He said that bond markets and money markets
have factored in a rate cut from the Reserve Bank of India (RBI) already and
are moving accordingly at present.
“There’s
a lot of liquidity in the system and market feels that inflation has also
appears to be benign. So bond markets have factored in an interest rate cut.
Deposit rates are coming down. Rates on commercial papers have come down,” he
said.
Source
Livemint
.com
By
Shah
Mohammad Abdul Qadir
PGDM
3rd Semester
IIMT
College of Management
Greater
Noida, U.P.
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