Profit

Infusion Of Rs 70,000 Crore In State-Run Banks To Push Loan Growth By 15%: Moody's

Moody's estimates that fresh capital will enable PSU banks to grow loans by around 13-15% in 2019-20, compared with about 10% in fiscal year 2019.

 Share
EMAIL
PRINT
COMMENTS
Infusion Of Rs 70,000 Crore In State-Run Banks To Push Loan Growth By 15%: Moody's
Mumbai: 

The government's announcement of an upfront capital infusion of Rs 70,000 crore in public sector banks will enable them to grow loans by around 13-15 per cent in the fiscal year ending March 2020 and will also allow them to meet the final Basel III capital requirements, rating agency Moody's said on Monday.

"The announcement by the Indian government that it will frontload its planned Rs 70,000 crore capital infusion into the public sector banks will improve the bank's capitalisation and help them calibrate their balance sheet growth," said Alka Anbarasu, vice president, financial institutions group, Moody's Investors Service. 

"We estimate that the fresh capital will enable public sector banks to grow loans by around 13 per cent - 15 per cent in the fiscal year ending March 2020 (fiscal 2020), compared with about 10 per cent in fiscal 2019, while also allowing them to meet the final Basel III capital requirements (regulatory minimums plus the capital conservation buffer)." 

The capital infusion is part of India's government budget for fiscal 2020, added Ms Anbarasu.

Announcing the capital infusion on Friday, the government also rolled back recent tax hikes on foreign and domestic equity investors in an attempt to boost market sentiment and revive the slowing economy.
 



Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top