Uphill climb for public sector banks in raising equity

Eight PSBs have received board approvals to raise fresh capital aggregating Rs 35,000 crore

A number of public sector banks (PSBs) are lining up to raise fresh equity capital from the market in the coming months. Convincing investors to put money, however, may prove to be an uphill task, especially for the smaller banks.

Eight public sector banks — including the likes of State Bank of India (SBI) and Bank of India (BoI) — have taken board approvals to raise fresh capital aggregating over Rs 35,000 crore, while another five have informed stock exchanges that their boards will consider capital raisings in the coming months. 

SBI’s board, for instance, has given its nod to raise up