NEW DELHI: The finance ministry is more likely to infuse about Rs 10,000 crore inside a couple of days in some state-owned lenders including PNB, Corporation Bank and Central Bank of India, to help them meet regulatory capital requirement, assets stated.
Some of those banks have come beneath drive as a result of interest payment to their bond holders of Additional Tier 1 (AT-1) bonds, assets stated.
As a consequence, they had been dealing with the danger of breaching the regulatory capital requirement, assets stated, including that the ministry has determined to offer capital to 4-Five banks that are dealing with "acute shortage".
Banks lift capital via AT1 bonds, that are perpetual in nature and due to this fact supply upper interest rates to traders. A high stage of unhealthy loans and widening losses have made it tricky for banks to carrier these bonds from their very own income.
The assets stated that capital infusion would possibly take place this week itself or latest through subsequent week in a few of banks including Punjab National Bank, Central Bank of India and Corporation Bank.
The infusion can be part of final Rs 65,000 crore out of Rs 2.11 lakh crore capital infusion over two financial years.
The new spherical of infusion will likely be between Rs eight,000 and Rs 10,000 crore, assets stated.
The govt announced Rs 2.11 lakh crore capital infusion programme October final year. As per the plan, the general public sector banks (PSBs) had been to get Rs 1.35 lakh crore via re-capitalisation bonds, and the balance Rs 58,000 crore via raising of capital from the marketplace.
Out of the Rs 1.35 lakh crore, the government has already infused about Rs 71,000 crore via recap bonds in the banks and balance can be achieved all the way through this fiscal.
Besides, PSBs are also making plans to tap the markets to boost greater than Rs 50,000 crore this fiscal to shore up their capital base for trade growth and assembly regulatory international chance norms.
Capital is very much required for these banks as they are saddled with non-performing property (NPAs) or unhealthy loans of about Rs 10 lakh crore.
Out of 21 public sector banks, 13 have already taken the approval of their boards or shareholders for raising capital through the equity marketplace,
The combined value of the stocks gross sales of those banks is upwards of Rs 50,000 crore.
Leading the pack is the Central Bank of India, which has already were given shareholders' approval for raising Rs eight,000 crore equity capital via more than a few approach, including a follow-on public offer, rights factor or a certified institutional placement (QIP), to shore up its capital base.
Some of those banks have come beneath drive as a result of interest payment to their bond holders of Additional Tier 1 (AT-1) bonds, assets stated.
As a consequence, they had been dealing with the danger of breaching the regulatory capital requirement, assets stated, including that the ministry has determined to offer capital to 4-Five banks that are dealing with "acute shortage".
Banks lift capital via AT1 bonds, that are perpetual in nature and due to this fact supply upper interest rates to traders. A high stage of unhealthy loans and widening losses have made it tricky for banks to carrier these bonds from their very own income.
The assets stated that capital infusion would possibly take place this week itself or latest through subsequent week in a few of banks including Punjab National Bank, Central Bank of India and Corporation Bank.
The infusion can be part of final Rs 65,000 crore out of Rs 2.11 lakh crore capital infusion over two financial years.
The new spherical of infusion will likely be between Rs eight,000 and Rs 10,000 crore, assets stated.
The govt announced Rs 2.11 lakh crore capital infusion programme October final year. As per the plan, the general public sector banks (PSBs) had been to get Rs 1.35 lakh crore via re-capitalisation bonds, and the balance Rs 58,000 crore via raising of capital from the marketplace.
Out of the Rs 1.35 lakh crore, the government has already infused about Rs 71,000 crore via recap bonds in the banks and balance can be achieved all the way through this fiscal.
Besides, PSBs are also making plans to tap the markets to boost greater than Rs 50,000 crore this fiscal to shore up their capital base for trade growth and assembly regulatory international chance norms.
Capital is very much required for these banks as they are saddled with non-performing property (NPAs) or unhealthy loans of about Rs 10 lakh crore.
Out of 21 public sector banks, 13 have already taken the approval of their boards or shareholders for raising capital through the equity marketplace,
The combined value of the stocks gross sales of those banks is upwards of Rs 50,000 crore.
Leading the pack is the Central Bank of India, which has already were given shareholders' approval for raising Rs eight,000 crore equity capital via more than a few approach, including a follow-on public offer, rights factor or a certified institutional placement (QIP), to shore up its capital base.
Finance Ministry likely to infuse about Rs 10,000 crore soon in PSU banks
![Finance Ministry likely to infuse about Rs 10,000 crore soon in PSU banks]()
Reviewed by Kailash
on
July 17, 2018
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