FM Nirmala Sitharaman on Banks: Many major decisions are taken from time to time for the banks by the Central Government. After the privatization of banks, the government has taken such a decision, which may shock you.
Government Bank News: Many major decisions are taken from time to time for the banks by the Central Government. After the privatization of banks, the government has taken such a decision, which may shock you. A few days are left for the government’s budget (Budget 2023). Meanwhile, the government has said that it will not infuse capital into banks in this budget.
According to the information received from the sources, due to the better financial condition of the public sector banks, there is little possibility of the government announcing new capital infusion in the next financial year’s budget . The capital adequacy ratio of public sector banks has exceeded the regulatory requirement and is currently in the range of 14 per cent to 20 per cent.
Raising funds from the market
Let us tell you that these banks are raising funds from the market to increase their resources. Apart from this, they are also adopting the method of selling their non-core assets. The government last infused capital in public sector banks in the financial year 2021-22. It had earmarked Rs 20,000 crore for bank recapitalization through supplementary demand grant.
How much capital has been infused in the last 5 years?
During the last five financial years i.e. 2016-17 to 2020-21, capital of Rs 3,10,997 crore has been infused by the government in public sector banks. Of this, Rs 34,997 crore was arranged through budget allocation while Rs 2.76 lakh crore was raised by issuing recapitalization bonds to these banks.
Nirmala Sitharaman will present the budget
Finance Minister Nirmala Sitharaman will present the budget for the financial year 2023-24 on February 1. This will be the last full budget of the current tenure of the Narendra Modi government as general elections are due next year.
12 banks earned a profit of 15,306 crores
All 12 public sector banks had earned a total profit of Rs 15,306 crores in the first quarter of the current financial year. In the second quarter, this amount increased to Rs 25,685 crore. If compared to a year ago, the profit of these banks increased by nine per cent in the first quarter and by 50 per cent in the second quarter.
SBI earned a profit of Rs 13,265 crore
The country’s largest bank State Bank of India (SBI) has earned the highest ever profit of Rs 13,265 crore in the second quarter. Compared to the same quarter a year ago, this growth was 74 percent.
Total profit of banks increased by 32 percent
In the first half of the current financial year, the total profit of public sector banks increased by 32 percent to Rs 40,991 crore. Earlier, in the financial year 2021-22, despite the challenges of the Kovid epidemic, the total profit of these banks had more than doubled to Rs 66,539 crore.
The Finance Minister took this decision recently.
Many public sector banks had also announced dividend in the last financial year. A total of nine public sector banks had distributed Rs 7,867 crore as dividend to the shareholders. Finance Minister Nirmala Sitharaman had recently said that the efforts taken to remove the problem of bad loans have started yielding results and the profits of public sector banks have started increasing.
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