Budget 2022-23: Clarity on PSB privatisation is expected, say brokerages

Some clarity on the privatisation of two public sector banks, announced in last year’s Budget, is expected. Brokerages feel it is highly unlikely that the government will infuse capital in these banks, implying that these units will have to increasingly rely on market borrowings to meet funding requirements.

The government is also expected to extend the emergency credit line guarantee scheme, which has helped the MSME sector get greater access to credit during Covid. It may also provide some tax rebate to the sector.

Brokerages expect increased tax benefits on housing loans for interest payments and principal repayment. The government