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PSU banks may get Rs 70,000 cr via recap bonds in 4 months

NPAs of PSBs alone have increased from Rs 2.75 lakh cr in March 2015 to Rs 7.33 lakh cr as on June 2017

Press Trust of India  |  New Delhi 

funds, recapitalisation of PSBs, recapitalisation plan

The ministry may infuse about Rs 70,000 crore through in the non-performing asset (NPA)-hit public sector in the next four months, sources said.

Last month, Minister had announced an unprecedented Rs 2.11 lakh crore two-year road map to strengthen public sector The plan included of Rs 1.35 lakh crore.

Currently, the is in process of finalising the structure of bonds and decision could be made by the end of this month.

The minister had said there were multiple options before the for and they are being examined.

Once the structure is in the place, the would front-load bond issuance. The preliminary assessment indicates it could be between Rs 70,000 crore and Rs 80,000 crore, sources privy to the development said.

However, nothing has been finalised yet, the official sources said, adding that the ministry would get better picture of requirements of various after the second quarter results are out.

of public sector alone have increased from Rs 2.75 lakh crore in March 2015 to Rs 7.33 lakh crore as on June 2017.

Besides recapitalisation bonds, the minister had announced that would get about Rs 18,000 crore under the Indradhanush plan over the next two years. Under Indradhanush road map announced in 2015, the had announced to infuse Rs 70,000 crore in state- run over four years while they will have to raise a further Rs 1.1 lakh crore from the markets to meet their capital requirement in line with global risk norms, known as Basel-III.

In the last three-and-half years, the has pumped in Rs 51,858 crore capital in the public sector

Remaining Rs 18,142 crore would be pumped into over two years.

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First Published: Mon, November 06 2017. 01:23 IST
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