PSU Recapitalisation

Official data reveals that 648 of approximately 750 independent or non-official director roles on CPSE boards were unfilled by the end of December

Meanwhile, Zomato, Coal India, and HDFC Asset Management Company are likely to experience an increase in their weighting due to a rise in their free-float market capitalisation

A status check on the consolidation of four sets of state-run banks offers clues to the hard decisions that are needed, write Abhijit Lele and Raghu Mohan

The Comptroller and Auditor General of India (CAG) has written to the finance ministry seeking details about the ongoing performance audit of government's massive recapitalisation excercise of public sector banks (PSBs). CAG is doing performance audit on recapitalisation ofPSBs after 2016-17 and it has written a letter to the Department of Financial Services, Ministry of Finance, seeking various information, including rationale for distribution of capital among different PSBs, sources said. The Government of India made capital infusion to the tune of Rs 90,000 crore in 2017-18. This rose to Rs 1.06 lakh crore in the following year. During the last financial year, the capital infusion through bonds was Rs 70,000 crore. For the current fiscal, the government has earmarked Rs 20,000 crore for the capital infusion into the PSBs. Of this, the government allocated Rs 5,500 crore to Punjab & Sind Bank in November 2020 for meeting the regulatory requirement prescribed under the Basel III .

P&SB to park investment in HTM category; raises concern

Govt will invest Rs 12,750 crore in recapitalising the three state-owned insurance companies- Oriental Insurance, National Insurance and United India Insurance

The upcoming Union Budget may provide for another round of recapitalisation

The quantum of capital support would be worked out post EY gives its report, though DIPAM sources said that anywhere between Rs 9,000 crore and Rs 10,000 crore capital support would be required

While huge net NPAs leave nothing on the table, other capital-raising options are not easy currently, say experts