Will the government capitalize the PSU banks in this budget?
Answer
Answer
Mostly that will not be required. On the contrary, the budget may encourage banks to raise funds from open market and hive off non-core assets. PSU banks made net profits of Rs.17,132 crore in Sep-21 quarter. The good news is that CAR has improved to 14.3% and the PCR or provision coverage ratio stands at 84%. With the legacy of bad loans done, it was time to stop the funding.