Central Govt Mulls Rs 30,000-cr Fund Infusion In Public Sector Banks

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Central Govt Mulls Rs 30,000-cr Fund Infusion In Public Sector Banks

NEW DELHI: The government is considering additional capital infusion of up to Rs 30,000 crore in public sector banks as they have been unable to raise required fund from the market. The government had earlier envisaged that PSBs would raise Rs 58,000 crore from the stock markets by March 2019 to meet Basel III norms.

However, due to subdued market conditions, banks have been unable to raise enough fund from the markets so far. The RBI, at its last board meeting, deferred the requirement to meet the CCB target by one year, leaving about Rs 37,000 crore in the hands of banks. But PSBs still have a shortfall of around Rs 30,000 crore for meeting Basel III norms.