The government is looking forward to infuse Rs 4,000 crore capital in State Bank of India this financial year. This will increase the bank's capital adequacy ratio to over 13 per cent, said a top bank official. Mr. Diwakar Gupta, Managing Director of State Bank of India said, "The mode (of infusing capital) is being discussed and we have given various options. It is the government's call to decide on how to infuse that equity". The country's largest public sector lender has been waiting for Government's nod for the rights issue for more than two years. Earlier this week, the government had said that it would finalize the capital infusion plans for the public sector banks this week to strengthen the capital base of the banks as most of the state-run banks are hit by bad loans and poor asset growth. Mr. Gupta commenting on the revival of the economic conditions said, "We see some revival in 2-3 months". It said that the effect of the reforms announced by the government will take time to impact the real economy.
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