Govt permits 12 PSBs to raise Rs 3K cr from market

Govt permits 12 PSBs to raise Rs 3K cr from market
 In a bid to strengthen capital base of public sector banks (PSBs), the government has allowed 12 lenders to raise nearly Rs 3,000 crore via preferential shares over and above the Rs 22,915 crore capital support committed to them in July last year.

The Finance Ministry granted approval to 12 proposals of PSBs to raise a sum of Rs 2,914.038 crore through preferential allotment and permission given to raise Rs 200 crore by United Bank of India through QIP mode. The government had already infused a sum of Rs 25,000 crore in 19 PSBs during FY 2015-16.

“A budgetary provision of Rs 25,000 crore has been made for 2016-17 and the government has already allocated Rs 22,915 crore to 13 PSBs on July 19, 2016, of which, 75% has been allocated in first tranche, while the remaining amount will be released on assessment of the performance of PSBs, the Department of Finance said in its year-end review for 2016 on Sunday.

As regards consolidation in the banking space, it said that the Union Cabinet, in June 2016, had approved the proposal of acquisition of assets and liabilities of subsidiary banks i.e. State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Bhartiya Mahila Bank.

Also, as on December 23, 2016, out of total requirement of 1,27,198 fixed location ‘bank mitras’ in sub service areas (SSAs), 1,26,985 ‘bank mitras’ have been deployed by banks.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) cumulative gross enrolment reported by banks, subject to verification of eligibility, etc. is over 3.08 crore, while Rs 9.88 crore under Pradhan Mantri Suraksha Bima Yojana (PMSBY), as of December 28. Around 38.23 lakh subscribers have been enrolled under the Atal Pension Yojana (APY) with a total pension wealth of Rs 1,344.70 crore. Out of the total subscribers, 19.74 lakh subscribers have been enrolled during 2016 (up to December 15, 2016).

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