State Bank of India sees minimal impact of tighter cenbank rules for personal loans

MUMBAI (Reuters) - State Bank of India, the country's top lender, expects minimal impact on its capital ratios from the central bank's tighter rules for personal loans, its chairman told Reuters in a phone interview.

The impact of the increased risk weight on personal loans, including credit cards, will be 55-60 basis points (bps), Dinesh Kumar Khara said on Friday.

SBI's capital adequacy ratio stood at 14.28% as of September end.

"If we take into account the bank's half-yearly profit, which has not yet been adjusted in the capital ratios, then the capital adequacy ratio will rise by 109 bps," Khara said.

Even after accounting for the increased capital requirement, the bank has enough buffers and does not see the need to accelerate fund raising, Khara said.

(Reporting by Ira Dugal; Editing by Nivedita Bhattacharjee and Dhanya Ann Thoppil)

By Ira Dugal