AS CAPITAL TO PUBLIC SECTOR BANKS.
Government Of India is planning to inject $3 billion this fiscal year
and could double that amount next year in a push to boost capital
and help the banks to meet the Basel III regulatory requirements
says the Finance Secretary, Government of India.
As per RBI data, the public sector banks have a burden of Rs.95,122
crores as non performing assets (NPA's) from 30 defaulters.In terms
of percentage,it amounts to 36.5% of the total non performing assets of
the banks.Hence,the biggest worry for the state owned banks is the
non performing assets.Hence,banks have to think of various means to
infuse confidence amongst the investors and the Public.
State owned banks are sitting on a huge real estate assets which can be
revalued to arrive at a Fair Market Value.Further, the assets that are
mortgaged to banks for their lending also can be revalued to ascertain
the fair market value.Government of India has to come out with stricter
laws to recover the loans as the present system does not seem to be