INSUBCONTINENT EXCLUSIVE:
Public Sector Banks (PSBs) may raise capital themselves to meet regulatory and growth capital needs because there is unlikely to be any
fresh bank recapitalisation till the next government takes over in June, official sources said on Friday.Finance Ministry sources also said
the government has kept around Rs 5,000 crore as buffer for any last-minute contingency, for possible infusion into the merged entity of
Bank of Baroda, Dena Bank and Vijaya Bank.In January, the government got Parliament nod for an additional Rs 41,000 crore to recapitalise
public sector banks, over and above the already budgeted Rs 65,000 crore taking the total recapitalisation package for the current financial
said banks might need funds to support credit growth and they may have to raise capital from the market or wait for the full Budget in
categories -- better-performing banks under the RBI's Prompt Corrective Action (PCA) framework to deal with bad loans, non-PCA banks that
are close to going under PCA, banks that have exited PCA, and PCA banks that need to meet minimum regulatory capital norms.The task now
involves equipping better-performing banks to help them come out of the PCA framework threshold
regulatory capital norms.With the February round, the government has so far pumped Rs 1.90 lakh crore into PSBs since it announced the
approval for it, the sources added.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on
TheIndianSubcontinent.com/elections
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