State Bank of India sells up to $1.495bn of shares

The State Bank of India has begun selling new shares worth up to $1.495 billion according to a term sheet seen by FinanceAsia, to help bolster its balance sheet. 

Indian banks have been hit by the slowdown in India growth as their corporate clients struggle to repay loans. The sector’s capital to risk weighted assets CRAR ratio fell from 14.2% as of March 2012 to 12.7% as of September.

The State Bank of India’s total capital adequacy ratio was 11.69% and its tier 1 ratio 8.73% as of September 13, down from 11.85% and 8.82% respectively at June 13. Analysts have noted bad debts piling...