The remaining Rs 14,500 crore will be filled in the public sector banks (PSBs) by the Finance Ministry in the fourth quarter of the current financial year. Sources gave this information. After reviewing the performance of the first half, 12 state-owned banks, Punjab and Sindh Bank, have raised Rs 5,500 crore to meet regulatory requirements.
Government approved
In such a situation, the government has approved the infusion of capital into Punjab and Sind Bank from the preferential allocation of equity shares last month. 20,000 crore to public sector banks as part of the first batch of supplementary demands for grants for 2020-21. Of this, Rs 5,500 crore has been deposited in Punjab and Sindh Bank, followed by Rs 14,500 crore.
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Sources said the after-performance review of third-quarter data gives banks a clear idea of ​​how much burden they have incurred due to the restructuring of loans as per RBI guidelines amid the Kovid-19 pandemic. Beyond that, matters became clear about non-performing assets (NPAs) at the time, as the Supreme Court probably ruled on the interest case.
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The proposal has already come
The government has proposed Rs 70,000 crore in public sector banks in the financial year 2019-20. However, the government made no such commitment in the 2020–21 budget because it believed that banks would raise money from the market to suit their needs. Last fiscal, Punjab National Bank had a net profit of Rs 16,091 crore, Union Bank of India Rs 11,768 crore, Canara Bank Rs 6,571 crore and Indian Bank Rs 2,534 crore.
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Besides, Allahabad Bank has a net worth of Rs 2,153 crore, while United Bank of India has a net profit of Rs 1,666 crore. 200 crore to Andhra Bank. These banks have now been merged with other banks. Besides, Bank of Baroda is worth Rs 7,000 crore, Indian Overseas Bank is at Rs 4,360 crore, UCO Bank is at Rs 2,142 crore, Punjab & Sind Bank is at Rs 787 crore .
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