The Union government is to wait for some more time to infuse Rs 14,000 crore into State-run banks, at least till the next quarter. The Union Finance Ministry has deferred the as it wants to assess the banks’ needs after the second quarter results before pumping the cash to shore up their capital adequacy ratio (CAR).
An official familiar with the matter said that there will be more clarity on the banks’ requirement at that time. Also, the Ministry will able to work out how much reserves banks can plough back to shore up their CAR, the official said.
The finance ministry has prepared a matrix for assessing the capital requirements of banks which include indices such as credit growth, non-performing assets, recoveries and profitability.
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