Finmin asks PSBs to submit fund-raising roadmap in a month

The government had last month unveiled a whopping Rs 2.11-lakh crore two-year programme to strengthen the NPA-hit public sector banks (PSBs), which includes  recapitalisation bonds, budgetary support,  equity dilution.

New Delhi : As part of Rs 2.11 lakh crore recapitalisation exercise, the finance ministry has asked state-owned banks to submit their board-approved roadmaps for raising funds and strengthening core activities in about a month.

The government had last month unveiled a whopping Rs 2.11-lakh crore two-year programme to strengthen the NPA-hit public sector banks (PSBs), which includes recapitalisation bonds, budgetary support and equity dilution.

Banks should follow responsive and responsible banking, a senior official said, adding that each board should decide in a month or so before recapitalisation actually takes place as to what are the future areas they would like to work on.

They should look at their portfolios, stressed assets, non-core activities, fund raising from market and the core competencies, the official said.

This will help in better utilisation of the money that the government intends to provide to them, he said. In order to enhance the capital base of bad loan-ridden banks, the two-year plan includes infusion of Rs 1.35 lakh crore by way of recapitalisation bonds, Rs 18,100 crore through budgetary support, and Rs 58,000 crore from the market.