PSU banks to raise Rs 10,000 crore in two months: DFS Secretary

Public sector banks (PSBs) are planning to raise about Rs 10,000 crore via a mixture of fairness and debt in the remaining two months of the present fiscal ending March to help credit score decide up and meet regulatory necessities.

In the previous couple of months, lenders together with

, and (PNB) have raised about Rs 50,000 crore from the market.

“Banks have raised about Rs 50,700 crore from the market and we expect another Rs 8,000-10,000 crore to be raised in the remaining part of the year,” Financial Services Secretary Debasish Panda informed .

With regard to COVID-stress, he mentioned banks have made ok provisions anticipating slippages.

The authorities’s allocation of Rs 20,000 crore for 2021-22 would act as a buffer and used as and when required, he added.

In December 2020, Canara Bank raised Rs 2,000 crore whereas Punjab National Bank (PNB) raised Rs 3,788.04 crore via certified institutional placement (QIP).

RBI Governor Shaktikanta Das has been advising banks to proactively raise capital and never look ahead to a troublesome state of affairs to come up due to the continuing COVID-19 disaster.

Besides, the federal government has allotted Rs 20,000 crore for capital infusion into PSBs in the present fiscal. Of this, the Finance Ministry has granted Rs 5,500 crore to Punjab &

to meet the regulatory requirement. The authorities authorized capital infusion via preferential allotment of fairness shares in Punjab & Sind Bank final month.

During 2019-20, the federal government made Rs 70,000 crore capital infusion into the PSBs to enhance credit score for a powerful impetus to the economic system.

Punjab National Bank received Rs 16,091 crore,

obtained Rs 11,768 crore whereas Canara Bank and Indian Bank received Rs 6,571 crore and Rs 2,534 crore, respectively.

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