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Earlier this year, the government injected 11,336 billion rupees into five BSPs (GNP, Allahabad Bank, Indian Overseas Bank, Andhra Bank and Corporation Bank) to improve their financial health.
"We are going to brew the next tranche of recapitalization by mid-December, with about 42,000 rupee crores still to be infused as capital in public sector banks in the current fiscal year" said the manager.
He said that large state control agencies, such as the State Bank of India and the Punjab National Bank (PNB), may not need more capitalization during the year. current year ending March 2019.
"Some large public banks, such as SBI and PNB, may not need a new capital injection from the government in 2018-2019." , PNB has already received regulatory capital twice, "said the manager.
State banks will need less capital to comply with their capital adequacy standards, the Reserve Bank of India having decided last week to defer the deadline for compliance international standards or the Basel III standard for one year up to March 2020.
Last week, the RBI board, while deciding to maintain the capital requirement for banks to 9%, decided to extend for a year the transition period for the implementation implementation of the final 0.625% tranche in the capital conservation buffer – until March 31, 2020.
The rating agency Moody's Investors Service had said last week that the RBI board's decision to extend the deadline for banks to implement the Basel guidelines III was "negative for credit" for PSB.
The government announced the cremation capital infusion program of 2.11 million rupees last October. According to the plan, PSBs were to receive 1.35 billion rupees in the form of recapitalization bonds and the balance of 58,000 crores through the mobilization of capital on the market.
On the crore of 1.35 rupees, the government has already injected about 82,000 crores of rupees into bonds.
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