Need of higher capitalization in PSU banks for dealing with NPAs: RBI

New Delhi, July 6 (KNN) RBI Deputy Governor R Gandhi today said there is a need of higher capitalization in PSU banks for balance sheet growth and dealing with Non-Performing Assets (NPAs).

"Need higher capitalisation in PSU banks for balance sheet growth, dealing with NPAs. Need capital infusion for three things -- to meet Basel III, better provisioning and improving banks business," he said here.

FPOs (follow on public offer) and capital infusion by government are two ways to raise capital, he added.

For the current fiscal, the government has allocated Rs 7,940 crore in the Budget for capital infusion in state-owned banks but the government has pledged to provide more in the ongoing fiscal. (KNN Bureau)