BUSINESS MANTRA, FARIDABAD:
LALIT VIRMANI (Author is an Ex-Banking Executive)
Public Sector Banks (PSBs) in India has a requirement of Rs.1.80 Lakh Crores in the coming four years, of which Rs.70000 Crores shall be contributed by Government of India. Finance Ministry sources have revealed to provide Rs.25000 Crores each in next two years and Rs.10000 Crores each in further two fiscal.
Finance Ministry has indicated that Rs.7940 Crores has already provided in Budget and Mr. Arun Jaitley, Finance Minister has sought permission through Parliament to further provide Rs.12010 Crores for Banks before September, 2015. Rs.5000 Crores shall be contributed in the second half of the fiscal 2015-16, said Mr. Hasmukh Adhia, Secretary Finance, Department of Financial Services, Ministry of Finance, Government of India.
NPA of the PSBs have been continuously increasing, which is a matter of concern for the Banks, RBI and the Government of India.
The Capital requirement in PSBs is based on the credit growth in Banks around 12% to 15 % in the next four years i.e. Rs.180000 Crores. In this way PSBs shall be raising Rs.110000 Crores from markets.
Government of India had last year allowed to dilute government’s stake to 52% by raising funds from markets by equity selling.