Money

Govt to infuse over Rs 88139 crore in 20 Banks

Govt to infuse over Rs 88139 crore in 20 Banks”

"The entire objective of this exercise has been that it is government's prime responsibility to keep PSBs in good health", Jaitley told reporters at a press meet.

"State Bank of India will get Rs 8,800 crore, Rs 3,571 crore for Oriental Bank of Commerce, Rs 3,045 billion for Dena Bank, Rs 5,158 crore for Central Bank of India, Rs 4,694 billion for Indian Overseas Bank, Rs 9,232 billion for Bank of India", banking secretary Rajeev Kumar said addressing the media.

When the original plan of injecting Rs 2.11 lakh crore capital was announced last October, officials, including Chief Economic Adviser Arvind Subramanian, had indicated that the government will follow a "selective and differential approach" wherein priority would to be given to strong lenders while weak banks may have to either shrink in size or not grow from the current position.

The ministry is working on the various steps to be taken to ensure that the governance of the banks follows highest standards, said Finance Minister Arun Jaitley.

More news: Apple releases iOS 11.2.5 and watchOS 4.2.2 updates
More news: German woman sentenced to death in Iraq for joining Islamic State
More news: Student Wounded in Texas High School Shooting; Suspect in Custody, Police Say

There will be a separate stressed asset vertical in each of the PSBs for cleaner and timely recovery.

"While PCA banks have got a sizeable amount under the recapitalisation, few banks which are relatively better off have also got funds which should improve their balance sheets and allow them to raise further capital from the markets; and that could drive the next leg of growth for them", he said. It is only recently that the government has made a decision to recapitalize banks through bond issuances, and is exploring the capital market, rather than paying directly from its budget. In that light, why is a bank that has indulged the most in reckless lending to wilful corporate defaulters, including to the tainted liquor baron Vijay Mallya, should be given such preferential treatment, that too before it gets privatised?

"Capital will be given to banks on the basis of their performance and credentials", Kumar said. But has India's public sector bank recapitalisation programme come at the right time? For the PCA banks, the principal object appears to be that they maintain their regulatory capital. "There is no fiscal impact of bond issuance to banks..." He said, stringent norms for disbursal of high value loans have been framed, with strict surveillance on big loan defaulters and mandatory reporting of loans of over 250 crore rupees. These will be swap deals and cash neutral. He added that the bonds are to have a maturity period of 10-15 years and would be issued in six tranches.

On similar lines, Allahabad Bank fell 3.21 per cent, 2.43 per cent and United Bank of India lost 0.27 per cent.



Like this

Latest


26 January 2018
Stormy Daniels REFUSES to disclose if she had intercourse with Trump
Daniels, real name Stephanie Clifford, was interviewed for Inside Edition about the alleged affair. Cohen used a private company and a pseudonym to funnel the money to Daniels.

25 January 2018
Pacific trade pact aims to boost exports
The agreement comes amid worries that Trump will pull the USA out of the North American Free Trade deal. New Zealand Prime Minister Jacinda Ardern likewise said it was a step toward finalising an agreement.

25 January 2018
Trump signs solar panel tariff, angering USA installers
Some of the leading solar companies saw the tariff coming, Hochschild said, and stocked up on panels ahead of time. As prices plunged, almost 30 US plants closed over the past five years, according to The Associated Press.

24 January 2018
Samsung Galaxy S9, Galaxy S9
The handset was also spotted with a 5.8-inch QHD+ Super AMOLED display with rounded corners, similar to the Galaxy S8 . Although not confirmed by Samsung , it seems the S9 will include two different chips depending on where you live.

24 January 2018
MI doctor, U.S. resident for 40 years, faces threat of deportation
His detention in a county jail while awaiting deportation proceedings simply does not make sense. Niec's sister told WOOD-TV that the family does not know when he will be released from jail.

24 January 2018
Senior Bowl: Measurements to Watch
This is the third consecutive year ESPN has provided live coverage of the Reese's Senior Bowl practices. He will be a participant on the " South Team ", which is set to be coached by the Houston Texans staff.

22 January 2018
Novak Djokovic confident his injury is nothing to worry about
Yeah, I think it was the hardest I have. 'You've portrayed me as someone who is very greedy, asks for more money, ' he alleged. He lost each of his first two service games. falling into an early 3-0 hole. "I mean, we both struggled". "I get super dizzy.

21 January 2018
Armenian Prime Minister to participate in Davos World Economic Forum
To accentuate and recognize the historic meaning of built environment, 2018 has been announced as the European Year of Heritage. Armenian PM Karen Karapetyan will depart to Switzerland on January 22 to participate in the Davos World Economic Forum .

20 January 2018
Coroner waiting for tests on death of Dolores O'Riordan
One of the first to sign the book was the principal of the singer's old school, Laurel Hill Colaiste in Limerick. It is not known whether her burial will be affected by this new development.

20 January 2018
Pope Francis Performs Mid-Air Wedding Ceremony for Flight Attendants on Plane
On Thursday, the Pope took a moment to marry two flight attendants on his papal plane some 36,000 feet over Chile. When they explained the situation, he followed up by asking if they wanted to get married.



Recommended