The time now has come to review the Capital Requirement of Public Sector Banks. This is due to the high increase in the Bad loans in these banks. The actual position would be known only when the moratorium on loans ends and the repayment commences in the loan accounts in a normal way.
Hence, it is felt that there would be a requirement of augmenting the capital of PSU Banks, which the Government could not review, in the 2020-21 budget. Here is an article which details about the current position and the Government’s proposal to review the same.
No Comments