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-State Bank of India to get USD814m capital injection from govt.

M2 EQUITYBITES-November 7, 2011--State Bank of India to get USD814m capital injection from govt(C)2011 M2 COMMUNICATIONS

7 November 2011 - India's government will infuse INR40bn (USD814.5m/EUR594.5m) of capital into State Bank of India (BOM:500112), or SBIN, by the end of March 2011, the lender's chairman, Pratip Chaudhuri, said as quoted by Bloomberg on Saturday.

According to Chaudhuri, the bank needs to raise about INR400bn in new capital over the coming three years. SBIN will also seek funds from its shareholders and own funds, he told reporters.

SBIN, which is India's largest bank, has been negotiating a potential capital infusion with the government since February 2010.

In early October, rating agency Moody's lowered the bank's financial strength rating to reflect its weakening asset quality.

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Publication:M2 EquityBites (EQB)
Date:Nov 7, 2011
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