Economy

Govt unlikely to cut planned Rs 65,000 crore infusion in state-run banks: report

Updated : November 22, 2018 08:42 AM IST

The latest relaxation by the central bank is expected to reduce the banks’ capital requirement by around Rs 35,000 crore, the report said citing sources.

Stressed public sector banks are likely to require more capital than assumed earlier to meet the requirements, said the report.

The centre may not trim its planned Rs 65,000-crore infusion into public sector banks (PSBs) this financial year, despite the RBI's board move this week to defer the complete rollout of the capital conservation buffer (CCB) norms for banks by a year to March 2020, Financial Express reported.

However, after the central bank's decision, some of the large banks like Punjab National Bank (PNB) are likely to require lower amounts from the government.

The latest relaxation by the central bank is expected to reduce the banks’ capital requirement by around Rs 35,000 crore, the report said citing sources.

Stressed public sector banks — 11 of the 21 under the corrective regime of the RBI — are likely to require more capital than assumed earlier to meet the requirements, said the report.

Also the poll-bound government does not want to restrict on the lending, especially to employment-intensive small and medium enterprises, added the report.

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Govt unlikely to cut planned Rs 65,000 crore infusion in state-run banks: report

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