Capital infusion in public sector banks a band-aid solution4 min read . Updated: 09 Aug 2015, 09:08 PM IST
In the past 15 years, the govt has infused more than `81,000 crore capital in PSU banks but this capital is eroding due to rising bad assets
Shares of India’s state-run banks have been rallying since 31 July when finance minister Arun Jaitley announced a ₹ 70,000 crore capital infusion into this set of banks over four years. Going by the plan, ₹ 25,000 crore will be infused in phases during the current fiscal year and an equal amount next year, and ₹ 10,000 crore each over the following couple of years till 2019, when the new Basel norms kick in, which require banks to have higher capital to take care of market risks.
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