SBI Chairman Dinesh Kumar Khara says they have plans of raising the capital

The Chairman of State Bank of India Dinesh Kumar Khara stated that the bank does not have any immediate plans of raising capital as a reasonable profit of the final fiscal which would be ploughed back to take care of the foreseeable business growth.

He had also stated in a PTI interview that “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.”

With respect to the current year and the issues being faced, he stated that the bank has sufficient resources to handle the business growth.

The SBI chief stated that “This year, as of now we are hoping we will have a reasonable plough back of profit to take care of foreseeable growth of assets.”

He further added that the bank would constantly look over 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.”

He mentioned that the bank would keep trying to maintain the interest rates benign as long as possible with an insight to support the economic growth.

State Bank of India, the country’s largest lending institution has reduced their home loan interest rate to 6.70 %.


The applicants can avail of home loans starting from 6.70% for loans up to Rs. 30 lakhs and 6.95% for loans above Rs. 30 lakhs to Rs. 75 lakhs. For home loans above Rs. 75 lakhs the interest rate is above 7.05%.

The lending institution demands over 34% of the market share in home loans. The home loan portfolio has successfully crossed Rs. 5 lakh crore.

Due to the second wave of COVID-19 on non-performing assets of the bank, there has been a major impact. However, Khara stated that the lockdown was not pan-India, we would have to wait and watch to thoroughly assess the impact of this on the banking sector.

Keeping in mind the multiple variables including inflation have a bearing on the interest rates, he has said that “our effort is to support the growth initiatives. To really ensure that happens, we will try to keep the soft interest rate regime for as long as possible.”


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