No immediate plans to raise capital: SBI Chairman

SBI chairman Dinesh Kumar Khara has recently said that the bank does not have immediate plans to raise capital as a reasonable profit of the last fiscal would be ploughed back to take care of foreseeable business growth.

In an interview, he said, “We had raised Tier I and Tier II bonds earlier. Considering the growth we had seen last year, we are having a comfortable capital adequacy ratio.”

As regards the current year, he said the bank has enough resources to take care of the business growth. “This year, as of now we are hoping we will have a reasonable plow back of profit to take care of foreseeable growth of assets,” he stated.

However, he added, the bank would continue to monitor the situation, and “as and when we feel there is a need for raising capital, we will certainly go to the market and raise the fund. As of now, plans in that direction have not been finalised.”

Dinesh Kumar Khara also said that the bank will try to keep the interest rates benign as long as possible with a view to supporting economic growth.