Capital Infusion in PSU banks – Is it positive? FM has announced yesterday that ~Rs.140 bn will be infused in the PSU banks to augment their Tier-I capital. Many banks have tier-I capital below 8% levels and as per the FM statement this capital infusion through preferential route will ensure that banks have 8% Tier-1 capital by the end of the FY14. It has also been indicated that second round of capital infusion will happen during Q4FY14 for banks offering concessional rates for home, auto and consumer durable loans till January 2014. We maintain our cautious stance on PSU banks as they are reeling under asset quality pains due to large exposure to stressed sectors. Apart from this, most of them trade at
Posted on: Wed, 23 Oct 2013 05:28:35 +0000
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