The Centre may infuse about Rs 18,000 crore into public sector banks next fiscal, as a number of lenders have expressed concerns over their fundraising ability due to lack of support from the government.
According to reports, Finance minister Arun Jaitley is expected to make a reference in the upcoming budget to the banks looking to set up a holding company. The government is reviewing the possibilities, under which a non operating holding company can raise capital.
The government has provided an assistance of Rs 6,990 crore to nine of the 26 state-run banks on the basis of two new parameters of efficiency – return on equity (RoE) and return on assets (RoA). It had budgeted Rs 11,200 crore for capital infusion this fiscal.
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