The Centre has said that it may infuse an additional capital of up to eight thousand crore rupees in the public sector banks during the current fiscal, to expand their capital base. Briefing media in New Delhi this afternoon, Financial Services Secretary G S Sandhu said, a provision of 11 thousand, five hundred crore rupees have been made in the interim budget. The government had infused 14 thousand crore rupees in PSU banks during the last financial year.According to RBI, Indian lenders will require an additional capital of five lakh crore rupees to meet the new global banking norms.Mr. Sandhu also said that bad loans or Non Performing Assets in the PSUs are a cause of concern. He however added that due to vigorous recovery, cost cutting and cheaper funds of the banks, the NPA situation has improved in January-March quarter of 2014, as compared to October-December of 2013. He said, the gross NPAs in January to March quarter in 2013-14, came down to 4.44 per cent from 5.07 per cent in the previous quarter of October-December of the same fiscal. The Secretary said, the banks may go for change in management of the parties who willfully do not clear their dues.
News On AIR | May 13, 2014 6:04 PM
Capital base expansion: Centre to infuse additional capital in PSU banks