PSBs mobilise around 3 lakh crore in last 10 years from market
New Delhi, July 09: The Public Sector Banks (PSBs) have mobilised around Rs 3 lakh crore in the last ten years.
PSBs source capital through internal capital generation, mobilisation of capital from markets, and infusion by the Government.
Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, on Monday told Lok Sabha that during the period from financial year (FY) 2008-09 to FY2018-19, PSBs have mobilised Rs. 2,81,616 crore of capital through sources other than Government.
"From FY 2008-09 to FY 2018-19, the PSBs have posted net profit of Rs. 98,373 crore, of which a sizeable proportion has contributed to internal capital generation. During the same period, Government has infused capital of Rs. 3,15,721 crore in PSBs," Thakur said in written reply to a question.
He said that in the Union budget for the financial year 2019-20, Government has proposed to make provision for infusion of Rs. 70,000 crore to PSBs to boost credit for a strong impetus to the economy.
Talking about the capital shortage in PSBs, Thakur said, "As per the Reserve Bank of India (RBI) guidelines, banks in India are required to maintain a minimum Capital to Risk-weighted Assets Ratio (CRAR) of 9%. As on 31.3.2019, all 18 Public Sector Banks (PSBs) meet this minimum CRAR requirement."
The Minister said that State Bank of India has obtained approval for raising equity capital of up to Rs. 20,000 crore from the market by way of Qualified Institutional Placement (QIP) or other modes till March 31, 2020.
He added that the bank at present is well capitalised, with CRAR of 12.72% as on March 31, 2019, and, depending upon the requirement, it would decide on raising capital at an appropriate time during the financial year.