Home > Business > Banking > PSBs plan to raise Rs 58k cr this fiscal

PSBs plan to raise Rs 58k cr this fiscal

 Agencies |  2017-06-05 05:51:39.0  0  Comments

PSBs plan to raise Rs 58k cr this fiscal

New Delhi : Public sector banks, including SBI, Bank of Baroda and IDBI Bank, plan to raise Rs 58,000 crore through equity dilution during the current fiscal to meet Basel III norms and clean up their balance sheets.

Leading the pack, SBI plans to raise Rs 15,000 crore through share sale and expects this to complete by the year-end, probably through a qualified institutional placement (QIP).

"This is something for which we have everything in place but we will go when we find the market is conducive," SBI Chairperson Arundhati Bhattacharya has said.

Besides, Bank of Baroda and Central Bank of India plan to raise Rs 6,000 crore and Rs 6,500 crore from capital markets, respectively.

Oriental Bank of Commerce and IDBI Bank have taken board approval for raising Rs 5,000 crore each, through equity dilution, while Union Bank of India plans to Rs 4,950 crore during the current fiscal.

Raising funds from the market will ease the pressure on the exchequer of pumping in capital. As per the Indradhanush plan, public sector banks need to raise Rs 1.10 lakh crore from markets, including follow-on public offers, to meet Basel III requirements, which will kick in from March 2019.

This will be over and above Rs 70,000 crore banks will get as capital support from the government. Of this, the government has already infused Rs 50,000 crore in the past two fiscals and the remaining will be pumped in by the end of 2018-19.

In the Budget speech on February 1, Finance Minister Arun Jaitley announced capital infusion of Rs 10,000 crore for the current fiscal. "In line with the Indradhanush road map, I have provided Rs 10,000 crore for recapitalisation of banks in 2017-18. Additional allocation will be provided, as may be required," Jaitley had said.
PTI

Tags:    
Share it
Top