SBI chairman Mr Pratip Chaudhuri on Wednesday said that the rating downgrade by rating agency Moody's would not affect the bank much. He was addressing a press conference in Mumbai He said that the downgrade applied to its perpetual debt instrument which had about $625 milllion worth of paper outstanding. He said that overall composite rating for the bank remained at (Baa2) which is a notch higher than what is enjoyed by the sovereign - the Government of India has a rating of (Baa3).

He said that the rating downgrade was a reminder to the bank and its shareholders. He said the recapitalisation measures would now acquire a greater urgency. He expected the infusion of funds to happen by December 2011 or latest by March 2012.

He also detailed efforts taken by the bank to improve its capital adequacy. He said that from November about Rs 30,000 crore of export credit would be covered under ECGC scheme which would release about Rs 1400 crore of capital. Similarly SSI advances which are covered under a credit guarantee scheme to the extent of Rs 31,000 crore currently would be increased to about Rs 70,000 crore. This would also free up about Rs 2000 crore of capital.

Mr Chaudhuri said that the bank had asked the government for capital under different scenarios which would range from Rs 14000 crore to Rs 21000 crore. This would come in over 5 years. This year the government may provide anywhere between Rs 3000 crore and Rs 10,000 crore, he said.

Asked what plans SBI had if the government did not provide the money this year, he said, " There is no plan B."

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