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Government may have to increase capital infusion to banks 

February 24, 2014
The Economic Times

The government may have to increase its capital infusion to state-owned banks if lenders are unable to sell additional Tier 1 bonds in the financial year that begins April 1, analysts said.

In the interim budget announced on Monday, the government said it will inject Rs112bn (US$1.8bn) of capital in the state-run banks. Typically, the government's capital infusion is for common equity Tier 1.

According to estimates from India Ratings & Research, the local arm of Fitch, India's state-owned banks will need about Rs68bn in the next financial year to maintain their existing minimum common equity Tier 1 levels.

Read more: The Economic Times

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