Capital infusion to be done before FY12 end: SBI

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Capital infusion to be done before FY12 end: SBI

In an interview with CNBC-TV18, Diwakar Gupta, CFO of SBI spoke about the banking major’s rights issue for which they have got a green flag from the government.

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In an interview with CNBC-TV18, Diwakar Gupta, CFO of SBI spoke about the banking major's rights issue for which they have got a green flag from the government.

Below is an edited transcript of his interview on CNBC-TV18. Also watch the attached video.

Q: Can you confirm if you have got green signal on the rights issue and what the exact timing and the quantum will be?

A: The green signal on the rights issue has always been there. There has been most specific development yesterday. We met the ministry and again they have confirmed that, well within this financial year, we will get adequate capital - mostly likely about Rs 6,000 crore - could be little less or little more.

Q: What will the preferred instrument be in order to do this capital infusion and what might that do to immediately alleviate your capital adequacy ratio?

A: It will be a preferential placement to the government for the share that they give us. If it is Rs 6,000 crore, we might need to do nothing more to raise any further capital of any kind to reach 8% of tier one capital adequacy on March 31.

Q: You are saying that a number should be between Rs 5,000 and 7,000 crore and you would like to do it before the Union Budget?

A: It's within this financial year. The there could be some movement near about the Union Budget, but as far as our money is concerned, the last date is March 30 and it could come anytime. It could actually come anytime between now and March 30.