Government infused at Rs 3.15 lakh crore in PSBs between FY09 and FY19
New Delhi, July 8 () The government has infused more than Rs 3.15 crore into public sector banks (PSB) in the 11 years until 2018-19, was informed to Parliament on Monday.
In response to a question related to the shortage of capital in PSB to the Lok Sabha, the Minister of State for Finance Anurag Singh Thakur also said that according to the RBI guidelines, banks in India should maintain a ratio of minimum capital to risk weighted (CRAR) of 9 percent.
As of March 31, 2019, all 18 PSBs meet this minimum CRAR requirement, the minister said in the written response.
The source capital of the PSB through the internal generation of capital, the mobilization of capital markets and the infusion by the government.
Therefore, the infusion of capital by the government complements the internal generation of PSB capital and the mobilization of capital from the markets.
During the period between FY09 and FY19, the BPS mobilized Rs 2.81.616 billion of capital through sources other than the government, and published a net profit of Rs 98,373 crore, of which a considerable proportion contributed to the internal generation of capital, said Thakur. .
During the same period, the government has infused capital of Rs 3,15,721 crore in PSB, said the minister.
In the Union Budget for fiscal year 2019-20, the government proposed to provide for the infusion of capital from Rs 70,000 crore to PSB to boost credit for a strong boost to the economy.
The minister also said that, according to the contributions received from the State Bank of India (SBI), the bank has obtained approval to raise capital of up to 20,000 million rupees from the market through a qualified institutional placement (QIP) or other ways until March 2020 The SBI further said that it is currently well capitalized, with a CRAR of 12.72 percent as of March 31, 2019, against the regulatory requirement of 11.325 percent and, depending on the requirement, it would decide to raise capital at the appropriate time during the financial year NKD HRS