New Delhi: The Centre has infused Rs 3.15 lakh crore into public sector banks (PSBs) in the last 11 years from FY2008-09 to FY2018-19, Minister of State for Finance Anurag Singh Thakur said. The statement comes just days after the government proposed to make provision for the infusion of Rs 70,000 crores into PSU banks in Union Budget 2019 to boost credit for a strong impetus to the economy.
PSBs meet minimum CRAR
While responding to a question in the Lok Sabha, Thakur said that as per RBI guidelines, banks in India are required to maintain a minimum capital to risk-weighted assets ratio (CRAR) of 9 percent. He added that all PSU banks meet this minimum CRAR requirement as on March 31.
India’s largest public sector bank, State Bank of India (SBI), informed that at present it is well capitalised, with CRAR of 12.
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72 percent as on March 31 against regulatory requirement of 11.325 percent and, depending upon the requirement, it would decide on raising capital at an appropriate time during the financial year.
Fund-raising from non-govt sources
PSBs source capital through internal capital generation, mobilisation of capital from markets, and infusion by the government. Thus, capital infusion by the government complements PSB’s internal capital generation and mobilisation of capital from markets.
During the period from the FY09 to FY19, PSBs have mobilised Rs 2,81,616 crore of capital through sources other than the government, and have posted a net profit of Rs 98,373 crore, of which a sizeable proportion has contributed to internal capital generation.