The regional state of Bavaria is set to inject up to €10bn ($12.6bn) into BayernLB, in another sign that Germany’s ailing public sector banks are seeking alternatives to the federal government’s bail-out plan to avoid a forced consolidation. Bavaria’s government and parliament are this week expected to decide on the capital injection into BayernLB. About €7bn will be paid by the regional state. The rest has been requested from Soffin, the federal government’s stabilisation fund. BayernLB previously asked for €5.4bn from the bank bail-out fund, but has scaled its request back now the regional state is prepared to step in. However, it is still unclear if Soffin is prepared to give a capital injection without having a say in the bank’s strategy – which is what the Bavarian state is hoping. The bank is on Monday expected to unveil an overhaul of its business model and a cost-cutting programme.