Govt may not need to infuse fresh capital in PSU banks this fiscal: Report

The government may not have to inject fresh capital into the public sector banks (PSBs) as one-time loan restructuring permitted by the RBI has reduced additional fund requirements by them.

Also, the poor credit offtake on account of coronavirus pandemic may obliterate the need for significant growth capital during the current fiscal, sources said.

There may not be a sudden surge in non-performing assets (NPAs) after the six months moratorium comes to an end this month as it is followed by one-time loan restructuring, sources said, adding, provisioning requirement is also quite low for the debt recast accounts.

Moreover, most