Government to infuse Rs 88139 crore into 20 PSBs before March

Jaitley said the government has also chose to capitalise public sector banks (PSBs) in a front-loaded manner, with a view to support credit growth and job creation.

Giving presentation on banking reforms, Secretary Department of Financial Services, Rajeev Kumar said, repositioning PSBs will lead the growth and serve people responsibly and responsively.

Punjab & Sind Bank to get Rs 785 crore; IDBI Bank s 10,610 crore; Canara Bank-Rs 4,865 crore; Union Bank Rs 4,524 crore; Syndicate Bank Rs 2,839 crore; BoM Rs 3,173 crore.

Mr Jaitley said that the Non Performiong Assets (NPAs) was a major problem which NDA Government inherited and trying to find out the solution for it. He also added that PSBs should give loans responsibly so that there are no non-performing assets.

More news: Spanish court rejects issuing European Union arrest warrant for Puigdemont

"While PCA banks have got a sizeable amount under the recapitalisation, few banks which are relatively better off have also got funds which should improve their balance sheets and allow them to raise further capital from the markets; and that could drive the next leg of growth for them", he said. The capital infusion plan for 2017-18 includes Rs. 80,000 crore through recapitalisation bonds and Rs. 8,139 crore as budgetary support.

"Governance reforms for state banks have been lethargic, notwithstanding the frequency of talks around changes in governance and underwriting practices at state banks", analysts at Fitch Ratings said.

Alongside the fund infusion, the government announced a set of measures to keep a close watch on the asset quality of the banks, including "specialised monitoring" by agencies for corporate loans of more than Rs 250 crore.

While 11 "weak banks", under the Reserve Bank of India's (RBI) "prompt corrective action" (PCA), there are nine PSU banks that are not classified under extreme distress, but nevertheless have been given funds to ramp up their capital, and thereby lending capacities.

More news: Take the cognitive test that President Trump passed during his physical

Depositors money in PSB is safe and no state-owned bank would fail.

The government will issue recapitalisation bonds of 6-10 years maturity. These bonds will be non-tradable and not carry the status of an SLR (Statutory Liquidity Ratio) security, Economic Affairs Secretary Subhash Chandra Garg said.

Mumbai: Stakes of State Bank of India (SBI) and other big state-run banks fell on Thursday as they stood to receive less money than investors had expected from the government's much-awaited recapitalisation plan, Reuters reported today morning.

For example, Bank of India previous year exited its entire 5 per cent holding in credit bureau TransUnion Cibil via a sale of shares to USA based TransUnion International.

More news: OnePlus checkout system reportedly hacked, customers report credit card fraud


Popular
  • Zainab's murderer caught: CM Punjab vouches for public hanging

    Zainab's murderer caught: CM Punjab vouches for public hanging

    The breakthrough came in what officials are calling a serial murder case and which has stirred outrage across the country. The confessional video of the accused in the rape and murder of seven-year-old Zainab, surfaced later on Wednesday.
    New Zealand launches first ever Electron satellite into orbit

    New Zealand launches first ever Electron satellite into orbit

    The company last May reached space with its first test launch, only to abort the mission due to a communication glitch. Rocket Lab now has five Electron vehicles in production, with the next launch expected to take place in early 2018 .
    Warning over snow, ice and wind set to hit town

    Warning over snow, ice and wind set to hit town

    "Strong winds bring the potential for temporary blizzard conditions and drifting of lying snow, mainly over high ground". The southern uplands of Scotland, northern England and Northern Ireland have also seen flurries of snow.
  • YouTube Gets Stricter with Content Creators

    YouTube Gets Stricter with Content Creators

    The change comes after a backlash over a video showing the YouTuber Logan Paul fooling around by the corpse of a suicide victim. Now, some of these changes have come to light, courtesy of a blog post from Google.
    Ashleigh Banfield Escalates Feud With Reporter of Aziz Ansari Story

    Ashleigh Banfield Escalates Feud With Reporter of Aziz Ansari Story

    I can't help but think Ansari and the photographer are both pathetic and doing a disservice to an important grass roots movement. I'm an avid supporter of #Time'sUp and #MeToo, but I feel like this didn't need to be shared. "This was not what I expected".
    Palestinian killed in gun battle with Israeli army

    Palestinian killed in gun battle with Israeli army

    According to Wafa , the official Palestinian news agency, Jarrar used an automatic weapon to fire at the Israeli soldiers. Eighteen Palestinians have been killed since Trump's declaration, a lot of them in clashes with Israeli forces.
  • Durant's 32 points send Warriors past LeBron, Cavs 118-108

    Durant's 32 points send Warriors past LeBron, Cavs 118-108

    In addition, they also have Brooklyn's unprotected first-round pick in this year's draft, acquired in the Kyrie Irving deal. They did not play well in the first half, stayed steady in the third quarter, and turned it on in the fourth quarter.
    Man Living in MI  for 30 Years Deported

    Man Living in MI for 30 Years Deported

    Garcia was brought to the country with an undocumented relative when he was 10 years old, according to the Detroit Free Press . They're depressed". "That's when the tears just started flowing, because we knew that was going to be it".
    Ford Brings the Ranger Back into the Fold

    Ford Brings the Ranger Back into the Fold

    Available B&O PLAY premium audio is specially tuned for the Ranger cab to deliver a rich and engaging listening experience. It will be controlled within a 3.8, four, or 8-inch touch-screen system, depending upon trim package chosen.
  • Summit Midstream Partners (SMLP) Now Covered by Credit Suisse Group

    Six equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. Goldman Sachs Group began coverage on shares of Enable Midstream Partners in a research report on Friday, November 17th.
    AAP calls EC's move to disqualify 20 MLAS as unconstitutional

    AAP calls EC's move to disqualify 20 MLAS as unconstitutional

    BJP leader Sambit Patra tweeted: "Those who started their political journey against corruption are themselves corrupt". Reacting to the recommendation AAP said the Election Commission was insinuated into such action by the prime minister.
    17 dead after blaze engulfs plastic factory in Bawana

    17 dead after blaze engulfs plastic factory in Bawana

    Meanwhile, Delhi chief minister Arvind Kejriwal posted a tweet saying that he was keeping a close watch on the rescue operations. All casualties are from Sector 5 fire. "But explosions took place inside the building, causing casualties", Garg said.

CONNECT