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Wednesday, March 11, 2015

Govt allows 7 PSU banks to raise capital from market - Livemint

Government allows seven PSU banks to raise capital from market

Top lender SBI and at least 2 other state-owned lenders — PNB and Canara Bank — have plans to raise funds through share sales. Photo: Mint




New Delhi: The government has allowed seven state-run banks to raise capital from market as part of efforts to help them comply with global Basel III banking rules, a finance ministry statement said on Wednesday.


The government in its budget for the next fiscal year that starts from 1 April has allocated Rs7,940 crore ($1.26 billion) for capital infusion in state-banks, far lower than what the market had expected.


The statement, issued after government officials’ meeting with the chiefs of state-run banks, did not name the lenders allowed to sell shares or mention any timeframe for such sales.


Top lender State Bank of India and at least two other state-owned lenders — Punjab National Bank and Canara Bank — have plans to raise funds through share sales. Reuters



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