Red lights flashing in PSBs make fresh equity injections imperative

Fresh equity injections have become significantly more imperative, as economic recovery remains shaky due to continued acceleration in new coronavirus cases

Topics
PSBs | equity inflows | public sector banks

Business Standard 

Fitch Ratings says many state banks are able to meet minimum regulatory thresholds under moderate stress, but most struggle to manage a 6.125 per cent common equity tier-1 (CET1) ratio under high stress — the applicable bail-in trigger for additional tier-1 securities from September 2020.

Fresh equity injections have become significantly more imperative, as economic recovery remains shaky due to continued acceleration in new coronavirus cases. Private banks have better loss-absorption capacity, but are nonetheless bolstering core capital, with ICICI and Axis Bank planning to ...
First Published: Mon, August 03 2020. 06:04 IST