In any case, he said, "they are lending, they're doing all that businesses but there are some restraints, so that they will be out of that. So we hope that before the close of this financial year (they should be out of PCA)."
He also assured additional capital for these banks
if the regulator insists as the government has cushion of the remaining amount of Rs 20,000 crore recapitalisation budget for PSBs.
"Although we believe that they are already meeting the regulatory requirement of 11.5 per cent Capital to Risk (Weighted) Assets Ratio (CRAR) so that we will take it forward and we hope that they should also come out from the PCA," he said.
For the current financial year, the government had allocated Rs 20,000 crore for capital infusion into the PSBs for meeting the regulatory requirement.
Among the 12 PSBs, Punjab & Sind Bank was given Rs 5,500 crore.
Parliament had in September approved the Rs 20,000 crore capital infusion in PSBs as part of the first batch of Supplementary Demands for Grants for 2020-21.
With Rs 5,500 crore going to Punjab & Sind Bank, the government is left with Rs 14,500 crore.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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