Govt pumped Rs 3.15 lakh cr in PSBs in 11 years to FY19

New Delhi: The government has infused over Rs 3.15 lakh crore into public sector banks (PSBs) in the 11 years through 2018-19, Parliament was informed Monday.

Replying to a question related to capital shortage in PSBs to the Lok Sabha, Minister of State for Finance Anurag Singh Thakur also said as per RBI guidelines, banks in India are required to maintain a minimum capital to risk-weighted assets ratio (CRAR) of 9 per cent.

As on March 31, 2019, all 18 PSBs meet this minimum CRAR requirement, the minister said in the written reply.

PSBs' source capital through internal capital generation, mobilisation of capital from markets, and infusion by the government.

Thus, capital infusion by the government complements PSBs' internal capital generation and mobilisation of capital from markets.

During the period from the FY09 to FY19, PSBs have mobilised Rs 2,81,616 crore of capital through sources other than government, and have posted a net profit of Rs 98,373 crore, of which a sizeable proportion has contributed to internal capital generation, Thakur said.

"During the same period, the government has infused capital of Rs 3,15,721 crore in PSBs," the minister said.