PSU Banks to get more capital from GoI

PSU Banks to get more capital from GoI, to enable concessional lending to select sectors Government of India (GoI) has decided to enhance the amount of capital to be infused into PSU Banks sufficiently higher from the budgeted sum of `14,000cr.

The additional capital provided to banks is primarily to enable them to lend to borrowers in selected sectors such as two wheelers, consumer durables etc, at lower rates in order to stimulate demand. The extent of benefit of this move to the demand growth in aforesaid sectors would likely depend upon the quantum of interest rate concession provided. We still await more clarity regarding the operational nature of the scheme.

Source: Angel Broking

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