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This article is more than 2 year old.

3 PSBs, 2 private lenders plan to raise up to Rs 62,000 crore to grab NBFC market share, says report

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In a bid to pull the market share from the non-banking finance companies (NBFCs) and smaller state-run banks which are facing a credit crisis, top public and private sector banks are going on a fundraising spree to collectively raise Rs 62,000 crore this year, The Economic Times reported.

3 PSBs, 2 private lenders plan to raise up to Rs 62,000 crore to grab NBFC market share, says report
In a bid to pull the market share from the non-banking finance companies (NBFCs) and smaller state-run banks which are facing a credit crisis, top public and private sector banks are going on a fundraising spree to collectively raise Rs 62,000 crore this year, The Economic Times reported.
State-run banks such as State Bank of India, Bank of India and Canara Bank, as well as, private lenders Axis Bank and RBL Bank are planning to raise the above mentioned amount in a bid to accumulate growth capital, the report said.
As per the report, SBI is looking to raise Rs 17,000 crore through bonds, with Rs 7,000 crore of this shortly as additional tier one (AT1) capital.
“We see consumption picking up around the festive season—the second half is always the busy season and first half is the easy season,” SBI chairman Rajnish Kumar told ET. “We have recorded a 13 percent credit growth and hopefully if this trend continues then we have to be prepared.”
Credit disbursals by NBFCs dropped 31 percent to Rs 1.96 lakh crore at the end of March from Rs 2.83 lakh crore in the year earlier, the report added.
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