INSUBCONTINENT EXCLUSIVE:
More than Rs 3.36 lakh crore has been spent on the banks in the last six years.Mumbai: The upcoming budget is unlikely to make any provision
for recapitalisation of state-owned lenders, as over Rs 3.36 lakh crore has been spent on the banks in the last six years, a domestic rating
agency said on Thursday.The banks will raise capital through internal accruals and fundraising from the market, Icra said in a note, adding
that the lenders have the ability to manage.Courtesy of the over Rs 3.36 lakh crore of fund infusions from the taxpayers, the state-owned
banks' stock of net non-performing assets has reduced to 2.8 per cent as of September 2021 from the 8 per cent level of March 2018, the Icra
past, the bank recapitalisation allocation is one of the most keenly awaited numbers in the annual budget exercise.The agency said
recoveries from legacy NPAs as NARCL (National Asset Reconstruction Company) becomes operational could aid the bottom lines of the banks in
the coming years.It said public banks were also able to roll over their additional tier I bonds that were due for a call option in FY22,
decade, we do not expect any capital to be budgeted by the government of India for public banks despite the enhanced regulatory capital
guarantee schemes to ensure near-term funding availability for NBFCs (non-infra) and to provide guidance on the medium-term support
headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
