INSUBCONTINENT EXCLUSIVE:
Public sector banks will require fresh equity infusion of Rs 1.2 lakh crore in the next five months, ratings firm Crisil said, pointing to a
crore has been infused into these banks
It means that Rs 99,000 crore would be still needed by March 2019
Most of the money is needed for the 11 PSBs put under the Prompt Corrective Action (PCA) framework of the Reserve Bank of India (RBI).
But
given their weak performance and low valuations, these banks have little ability to tap the market, Crisil said
associate director, Crisil Ratings, given the weak capital position of most PSBs, the imperatives are clear: The quantum of capital infusion
has to increase, risk weighted assets need to be brought down, and better-performing banks have to be nudged toward the market for capital.
