Viability plan includes Rs 2,000-crore infusion
Three-four months from now, the supply issue will go away depending on how this process goes on, and demand constraint will come back
To be used to fund a part of Rs 2.11-lakh crore plan to recapitalise banks
For recapitalisation to be a momentous step, we must see further reform of the HR and governance structure of the public sector banks
LIC, in the past, pumped capital in PSBs through preference share allotment and QIP
How can this situation be improved by pouring more capital, and that too through the easy option of financial trickery?
Move part of Centre's commitment to pump in over Rs 2 lakh cr to help NPA-hit PSU banks meet global adequacy norms
The manner of bank recapitalisation, new price controls in pharma, use of Aadhaar point to an expanding rather than contracting role for government
Govt to issue recap bonds; no discussion on holding company route
Estimates by rating agencies and analysts peg the capital requirement of PSBs for providing for NPAs at Rs 2.50 lakh crore
Bank nationalisation failed as banks granted huge loans to various entities through faulty appraisal and poor follow-up
The fiscal deficit target would be difficult to achieve if two-thirds of the planned recapitalization bonds are issued by the government
The government on October 24 unveiled a Rs 2.11-lakh crore two-year road map to strengthen NPA-hit public sector banks, which includes re-capitalisation bonds, budgetary support, and equity dilution
S&P Global Ratings today said the Rs 2.11 lakh crore capital infusion into PSU banks will help dealing with bloated balance sheet and enable banks to take 'haircuts' on their non-performing loans. The government plans to infuse capital totalling Rs 2.11 lakh crore (USD 32.4 billion) into the banks. That's much larger than its previous infusions over the past few years. This is around 35 per cent of the current Tier-1 capital of public sector banks. "The government's proposed capital infusions step will help address the banks' bloated balance sheets, which are partly constraining the economy. We believe the government's efforts should enable banks to take necessary 'haircuts' on their corporate nonperforming assets," S&P Global Ratings credit analyst Amit Pandey said. The non-performing loans in the banking sector are estimated to have touched Rs 10 lakh crore. Stating that the recapitalisation move will have positive implications, S&P said its impact on credit