Government to pour in Rs 4,000-cr capital into SBI

In order to boost the strength of country’s largest bank, SBI, government is expected to infuse Rs 4,000 in the bank. This will enhance bank’s Capital Adequacy Ratio (CAR) to over 13%.
What is CAR?

  • CAR is a key indicator of a bank’s financial strength expressed as a ratio of capital to risk-weighted assets.

What is the need for capital infusion in banks?

  • The capital infusion is necessary to boost up the core capital base of the state-run lenders hit by bad loans and poor asset growth.



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