Letter to BS: Large fund infusions in public sector banks fail to deliver

The government has infused Rs 1.9 trillion fresh capital into the public sector banks but it has not really improved the share value of most of these banks

This refers to “Large fund infusions in PSBs fail to deliver” (March 18). The government has infused Rs 1.9 trillion fresh capital into the public sector banks (PSBs) but it has not really improved the share value of most of these banks. First, the investors realise that a fair amount of the funds will be required for fresh provisioning for the stressed assets which will turn into non-performing assets both at the end of financial year (FY) 2018-19 and going forward in FY 2019-20. Second, the financial situations of many PSBs have been shown to have improved by tinkering with