The Finance Ministry announced that it intended to complete the recapitalization effort of state-backed banks by September. The State Bank's chairman Pratip Chaudhuri said that he had expected a total of INR4 billion capital infusion.
Chaudhuri told PTI that the state bank had already request for the INR4 billion recapitalization infusion. However, the bank chairman did not disclose further information. He also gave an affirmative response when asked if he was confident in getting the recapitalization fund. The Indian government said to fund a total of INR14 billion towards capital support this fiscal year.
Last year, the state bank received INR3.4 billion. Chaudhuri said that "It came in the previous year, it should come in this year also."
The recapitalization fund was raised by the nation's largest lender through preferential allotment of shares to India's government. The latter's shares in the bank went up to 62.3% from its previous 61.6%.
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