Finance Ministry directs PSBs to submit fund-raising plans in a month

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RecapitalisationAs a part of its recapitalisation plans, the finance ministry has directed all the state-run banks to submit their fund-raising roadmaps in a month.

In a bid to offer aid to the NPA-hit Public Sector Banks (PSBs), the Central Government allotted Rs 2.11 lakh crore programme, which includes recapitalisation bonds, budgetary support and equity dilution.

Banks are asked to be responsible and finalise a plan in a month or so before recapitalisation actually begins.

“They should look at their portfolios, stressed assets, non-core activities, fundraising from the market and the core competencies,” an official from the ministry said.

“This will help in better utilisation of the money that the government intends to provide to them,” he said.

As per its plans, Centre allotted Rs 1.35 lakh crore in form of recapitalisation bonds, Rs 18,100 crore through budgetary support, and Rs 58,000 crore from the market.

According to the official records, the Non-performing assets (NPAs) of public sector banks have inflated to Rs 7.33 lakh crore as of June 2017, from Rs 2.78 lakh crore in March 2015.

The government has invested over Rs 51,000 capital in public sector banks, in the last three and a half years.

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