Govt to examine PSBs' capital requirements for FY17: Jayant Sinha
Finance Minister Arun Jaitley has also promised to provide more if there is an additional requirement.
Government will examine the capital requirements of various public sector banks (PSBs) for the current fiscal to meet credit growth and NPA provisioning, Minister of State for Finance Jayant Sinha on Monday said.
"We are going to go through process of analysis now because banks have finished announcing their results (for 2015-16)," he said after launching IDBI Express, a low cost banking model of IDBI Bank, here.
"It is credit growth in some cases as well as what the further NPA provisioning that may be required that will drive the exactly what the capital requirements are," he said. The government had made a budget provision of Rs 25,000 crore for re-capitalisation of public sector banks for the current fiscal.
Besides, Finance Minister Arun Jaitley has also promised to provide more if there is an additional requirement. On the IDBI stake sale, Sinha said, the transformation process is underway.
"There are variety of factors that we are considering including the QIP, the size of the QIP, the kind of bidders that will emerge so let's wait and see how the whole process will emerge," he said.
The government in December gave approval to IDBI Bank for raising Rs 3,771 crore during the year, by way of Qualified Institutional Placement (QIP), a move which will dilute its holding by about 26 per cent in the lender. The government's holding in the bank stands at 73.98 per cent.
As part of transformation plan, IDBI Bank aims to increase its business to Rs 10 lakh crore and raising net profit to Rs 5,000 crore by 2018-19, its Managing Director Kishor Kharat said.
For 2015-16, the bank's net loss was Rs 3,665 crore against net profit of Rs 873 crore in 2014-15. The bank also plans to add another 1,500 new branches, he said, adding total network will increase to over 4,000.