{"id":37528,"date":"2018-11-24T18:01:08","date_gmt":"2018-11-24T12:31:08","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=37528"},"modified":"2018-11-26T13:23:38","modified_gmt":"2018-11-26T07:53:38","slug":"finmin-may-stick-to-capital-infusion-plan-for-psu-banks","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/finmin-may-stick-to-capital-infusion-plan-for-psu-banks\/","title":{"rendered":"FinMin may stick to capital infusion plan for PSU banks"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindu.com\/business\/Economy\/finmin-may-stick-to-capital-infusion-plan-for-psu-banks\/article25580726.ece\">FinMin may stick to capital infusion plan for PSU banks<\/a><\/p>\n<p><strong>News:<\/strong><\/p>\n<ol>\n<li>The Finance Ministry is expected to finalise infusion of about \u20b954,000 cr. in the next few weeks to the public sector banks.<\/li>\n<\/ol>\n<p><strong>Important Facts:<\/strong><\/p>\n<p>2. The proposal to not curtail its capital infusion plan for this financial year comes even as state-owned banks would be needing lesser funds following the Reserve Bank\u2019s decision to defer the deadline to meet Basel III norms by a year.<\/p>\n<p>3. The RBI extended the deadline for meeting the CCB of 2.5%, under Basel-III norms, until March 2020, which according to rating agency Crisil could reduce the burden of PSBs by \u20b935,000 crore this fiscal.<\/p>\n<p>4. The CCB currently stands at 1.875 per cent and the remaining 0.625 per cent was to be met by March 2019, as per the earlier deadline fixed by the RBI.<\/p>\n<div class=\"bluebox\">\n<p><b>Counter cyclical capital buffer:<\/b> The countercyclical capital buffer is intended to protect the banking sector against losses that could be caused by cyclical systemic risks.<\/p>\n<ul>\n<li>It requires banks to add capital at times when credit is growing rapidly so that the buffer can be reduced when the financial cycle turns<\/li>\n<\/ul>\n<\/div>\n<p>5. After assessing the requirement of each bank, the ministry is expected to finalise capital infusion of about \u20b954,000 crore soon.<\/p>\n<p>6. Under the new dispensation, the capital infusion by the government in public sector banks (PSBs) for meeting the capital buffer norms would come down to around \u20b915,000-20,000 crore.<\/p>\n<p><strong>7. Significance: <\/strong><\/p>\n<ul>\n<li>The infusion would help improve banks\u2019 financial health, and some banks would get necessary regulatory capital while others would get it for fuelling growth.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>FinMin may stick to capital infusion plan for PSU banks News: The Finance Ministry is expected to finalise infusion of about \u20b954,000 cr. in the next few weeks to the public sector banks. Important Facts: 2. The proposal to not curtail its capital infusion plan for this financial year comes even as state-owned banks would&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/finmin-may-stick-to-capital-infusion-plan-for-psu-banks\/\">Continue reading <span class=\"screen-reader-text\">FinMin may stick to capital infusion plan for PSU banks<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-37528","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700797430,"cached_date":1704190435},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/37528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=37528"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/37528\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=37528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=37528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=37528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}