Is SBI losing the top spot?

SBI may be fighting a losing battle to retain the spot as India's largest bank with the government. Is SBI losing the top spot?

 

SBI is already second in market capitalization. The pre-issue net worth of ICICI stands at Rs 24,313 cr ore. Its post-issue net worth will be Rs 45,000 crore.

 

The net worth of SBI for FY07 stands at Rs 31,300 crore. The SBI may soon cease to be the largest bank in assets as well, given capital crunch.

 

SBI's current CAR is 12.33% and its current capital is Rs 46,000 crore. Its requirement for Basel-II is 1% or Rs 6,000 crore.

 

The government's stake in the SBI is 59.7%. However, it can be cut to 55%. Its fresh shares issuable are 4.5 crore shares. Its capital at current market price is approximately Rs 6,000 crore.

 

SBI's additional loans that may be sanctioned, stand at Rs 48,000 crore and its loan growth in FY07 is Rs. 75,000 crore