INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The government will push large public sector banks (PSBs) to tap the market for fresh capital in the next fiscal as it is not
inclined to give them growth capital soon after having infused large amount of funds this year.
It is also seeking details from state-run
requirements.
In the current fiscal, the government has already infused the Rs 1.6 lakh crore of bank capitalisation plan announced earlier
capital.
The Insolvency and Bankruptcy Code (IBC) has led to record recovery Rs 98,493 crore by PSBs in first nine months of FY19.
According
to a recent IBA-BCG report, stress recognition is almost complete in PSBs and standard restructured advances as a percentage of gross
advances plunged to 0.5% in December 2018 from 7% in March 2015.
BIG LOANS SCRUTINYLast year, the government had asked all state-run banks
consequential wilful defaults in time refer cases to CBI
had tweeted.
Banks were further directed to seek passport details of borrowers taking loans of Rs 50 crore and more.
The government is
adding that bad loans for PSBs are already on a decline and a clear picture will help firm up plans for any emergency capital that may be
