Government considering additional capital infusion in public sector banks
Moneylife Digital Team 30 October 2014

PSBs will require an infusion of Rs2.4 lakh crore in equity by 2018 to comply with international standards laid out by the Basel III regulatory regime

 

The government is considering additional capital infusion in public sector banks (PSBs), according to a Union government official. The capital infusion will help the lenders boost credit amid rising bad loans. Bad debts accounted for 4% of total lending as of 31 March 2014, according to Reserve Bank of India data.

 

The government may almost double the amount of capital it will inject into PSBs this fiscal year to Rs21,700 crore, according to the government official.

 

PSBs will require an infusion of Rs2.4 lakh crore in equity by 2018 to comply with international standards laid out by the Basel III regulatory regime. This is the forecast as per the Budget Speech made by the Finance Minister earlier this year.

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