Even though the government reportedly suffers from the shortage of funds, its lust to micro-manage PSUs shows no sign of slackening. While approving SBI's Rs15,000-crore qualified institutional placement (QIP) issue last month, it directed the top lender to ensure that the government's shareholding in the bank does not fall below 52 per cent, as against 51 per cent specified in the SBI Act. This clearly shows that the government, as the promoter and majority shareholder, wants to keep a firm grip on India's largest bank. However, SBI has cautioned the government that the requirement of minimum 52 per cent government shareholding could result in restrictions in its equity capital raising efforts as the government may not be able to fund any further investments that would allow it simultaneously maintain its stake at the minimum of prescribed limit and seek funding from the capital markets. It has said in a report that "…As the Indian economy grows, more businesses and individuals will require capital financing. In order to meet and sustain increasing levels of growth in capital demand, the Bank will need to accrete (strengthen) its capital base, whether through organic growth or, more likely, capital market financing schemes. "If the bank is unable to grow its capital base in line with demand, its business, financial prospects and profitability may be materially and adversely affected."