(file photo)

The Department of Financial Services (DFS) had given Rs 8,800 crore to the State Bank of India (SBI) in the financial year 2017-18 as part of the capital infusion initiative in public sector banks.

Although the country's largest bank did not demand this amount.

The Comptroller and Auditor General (CAG) of the country said this in the report tabled in Parliament on Monday.

The CAG said in the compliance audit report for the financial year ending March 2021 that the department under the Ministry of Finance did not assess the capital requirement under its norms before capital infusion.

The Comptroller and Auditor General in its 2023 Report on the Central Government (Economic and Services Ministries) said, "Department of Financial Services (DFS) infused capital of Rs 8,800 crore into SBI in 2017-18.

This amount was put in the country's largest bank for the purpose of increasing the loan, although there was no demand for it.

The department did not assess the capital requirements as per its norms before infusing capital.

According to the report, the department released the amount in excess of the prescribed norms of the Reserve Bank of India (RBI) while infusing capital in the public sector bank.

RBI had already set an additional capital requirement of one percent for banks in the country.

This resulted in an additional capital inflow of Rs 7,785.81 crore.

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