Finance Ministry May Finalise Additional Fund Needs For Banks In 3 Months


NEW DELHI: The Finance Ministry is likely to finalise additional capital requirement, over and above budget provision of about Rs 8,000 crore, for public sector banks in the next three months.

The exercise of getting representations from individual banks for additional capital requirement would be completed by first week of July. Subsequently, the Department of Financial Services would make fair assessment of fund requirement, sources said.

Aggregation of data and compilation would take some time. Final picture on additional capital requirement is expected to emerge in 2-3 months, sources added.

Finance Minister Arun Jaitley on Friday had promised more capital infusion into public sector banks, saying there is "merit" in their demand for more funds over and above what was provided in the Budget.

"Banks have made a strong case for additional capital... And over the next few months, this is something the government is going to seriously look at," Jaitley had said.

The issue of additional capital requirement was also flagged by the Reserve Bank in view of mounting bad loans and support growth.

The government has earmarked Rs 7,940 crore in the Budget for recapitalisation of PSU banks for the current fiscal.

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Source: PTI