Finance Ministry may review capital requirement of PSU banks

By the end of second quarter, the capital requirement of PSU banks may be assessed by the finance ministry after getting a clarity about an increase in bad loans. In the wake of economic slowdown in India caused by the Covid-19 pandemic, the experts believe that the non-performing assets (NPAs) of the banks may witness a surge.

PSU banks
PSU banks

A shortfall of around 15 billion USD has been projected by the ratings agency Fitch by Indian banks to achieve a 10 per cent Weighted Average Common equity tier-1 (CET 1) ratio under moderate stress and in the absence of which banks would show high risk aversion.     

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