Rs 3 trn capital infusion cut PSBs' loss, not their credit supply: Report

Nine lenders of the 19 PSBs, including Indian Bank, State Bank, Bank of Baroda and Canara Bank, have reported current value of investment higher than the investment amount, the report said

The massive Rs 3 trillion capital infusion by the government into state-run banks over the past six years has helped them reduce losses but has failed to boost credit growth, says a report.

Between FY14 and FY19, the government has infused Rs 3 trillion in state-run banks-a good portion of which came in from the national insurer LIC. This has doubled the value of their stake in these banks to Rs 4.4 trillion as of July 2019, from Rs 2.2 trillion as of March 2014.

"While the government has infused huge capital into PSBs, the same has largely been used