MUMBAI (Standard&Poor's) March 22, 2012--Standard&Poor's Ratings Services said today that its rating on State Bank of India (SBI; BBB-/Stable/A-3) is not affected by a recent announcement that the government will inject Indian rupee (INR) 79 billion of capital into the bank. We believe SBI's capital and earnings will remain at "moderate" levels, after the infusion, which will increase its capital base by about 8%. We may raise our initial projection of the bank's pre-diversification risk-adjusted capital ratio, but it is likely to stay within a range of 5%-7% over the next 12-18 months. That's because we expect SBI's profitability to remain subdued in fiscal 2012-2013 (ending March 31), and the bank is likely to need additional
