1. Banks left out of infusion must raise funds on their own: RBI

Banks left out of infusion must raise funds on their own: RBI

RBI said those banks that have been left out of capital infusion must explore ways to become more profitable and try other routes of fund-raisng.

By: | Mumbai | Published: March 4, 2015 2:27 AM

RBI said those banks that have been left out of capital infusion must explore ways to become more profitable and try other routes of fund-raisng. The government has infused R6,990 crore in nine public sector banks in FY15.

Speaking to reporters on the sidelines of a Cibil conference, RBI deputy governor R Gandhi said banks already have enough capital, but they have to take care of their balance sheet.

“This is one aspect of giving incentive to banks on the basis of their performance,” Gandhi added. He said the government has told banks to become profitable and efficient to get capital.

“There is the element of balance sheet resizing or the reallocation of the risk assets in such a way that within the available capital they can still grow,” he said.

He said that to send a strong message, the government has taken a decision to reward those banks which have better figures (return on equity and return on assets) adding that these banks have to pull up their socks they have to become profitable and reach the benchmark.

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