Centre looking at ways to pump R5L cr into PSBs

Written by fe Bureau | New Delhi | Updated: Dec 7 2012, 09:29am hrs
Saying that Indian banks will require capital worth Rs 5 lakh crore by March 2018, minister of state for finance Namo Narain Meena said on Thursday that the government was examining the capital requirement of public sector banks till March 2018 and the ways to meet it.

In a written reply to a question in Rajya Sabha, he said the RBI has estimated that by March 31, 2018, the total regulatory capital requirements of Indian banks would be to the tune of R 5 lakh crore. Of this, non-equity capital will amount to R3.25 lakh crore while equity capital will amount to R1.75 lakh crore. The broad-level estimates suggest that the governments contribution to the equity capital of PSBs would be R90,000 crore at the existing level of the governments shareholding in individual PSBs, the minister said. These projections are based on the assumption of uniform growth in risk-weighted assets of 20% p.a. individually for all banks and individual banks assessment of internal accruals, he said.