New Delhi: Government is unlikely to announce capital infusion public sector banks (PSB) in upcoming budgetSources said their financial condition has improved due to reduction in bad loans. To augment their resources, banks would be encouraged to raise funds from the market and sell their non-core assets, he said.
In the current financial year, the government has earmarked Rs 20,000 crore for recapitalization of public sector banks. Finance Minister Nirmala Sitharaman The budget is expected to be presented on February 1.
It is to be noted that the net profit of public sector banks increased to Rs 14,012 crore in the first quarter from Rs 17,132 crore in the second quarter ended September 2021. The combined profit for the first half of the current financial year is close to the total profit earned in the entire previous financial year.
During the last financial year, PSB raised capital fund 58,697 crore, the highest amount raised in a financial year. The Capital Adequacy Ratio (CAR) of Public Sector Banks increased to 14.3% at the end of June, 2021, while the Provision Coverage Ratio of Public Sector Banks rose to an 8-year high of 84%. in some non-performing assetsBanks have made provisions up to 100%, sources said, adding that recovery from those accounts will directly become part of the bottom line.
Banks have been asked to focus on the recovery process as this will further strengthen their financial health. Meanwhile, banks are also working to expand their balance sheets under the credit outreach program that began on October 16, 2021.
In the current financial year, the government has earmarked Rs 20,000 crore for recapitalization of public sector banks. Finance Minister Nirmala Sitharaman The budget is expected to be presented on February 1.
It is to be noted that the net profit of public sector banks increased to Rs 14,012 crore in the first quarter from Rs 17,132 crore in the second quarter ended September 2021. The combined profit for the first half of the current financial year is close to the total profit earned in the entire previous financial year.
During the last financial year, PSB raised capital fund 58,697 crore, the highest amount raised in a financial year. The Capital Adequacy Ratio (CAR) of Public Sector Banks increased to 14.3% at the end of June, 2021, while the Provision Coverage Ratio of Public Sector Banks rose to an 8-year high of 84%. in some non-performing assetsBanks have made provisions up to 100%, sources said, adding that recovery from those accounts will directly become part of the bottom line.
Banks have been asked to focus on the recovery process as this will further strengthen their financial health. Meanwhile, banks are also working to expand their balance sheets under the credit outreach program that began on October 16, 2021.
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