Banks recapitalized Rs.128,861 crore
The Government has infused Rs.88,139 crore in Public Sector Banks (PSBs) during financial year (FY) 2017-18 as part of recapitalisation of Rs.2.11 lakh crore announced in October 2017.
This was done following the provision of Rs.65,000 crore made in the budget for the current financial year, Shiv Pratap Shukla, Minister of State for Finance, said in a written reply to a question in parliament on 14 Dec 2018.
Since the recapitalisation announcement till November 2018, PSBs have been recapitalised to the tune of Rs.128,861 crore through infusion and mobilisation of capital from the market.
Separately, nationalised banks made aggregate provision for NPAs and other contingencies of Rs. 4,05,456 crore during the last four financial years, resulting in net loss of Rs. 81,009 on aggregate basis over the period.
Government has infused Rs.107,543 crore capital in the last four financial years in nationalised banks to help them meet capital requirements, said Shukla.
As a result, while nationalised banks posted aggregate operating profits during the last four financial years (2014-15 to 2017-18) of Rs.345,180 crore.
Many had net losses primarily on account of continuing ageing provision for NPA recognised as a result of Asset Quality Review (AQR) initiated in 2015 and subsequent transparent recognition by banks including under RBI’s Revised Resolution framework for Stressed Assets issued in February 2018. fiinews.com
