Centre may redraw bank recapitalisation plan in wake of new challenges
Shortpedia
Content Team
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The government may redraw the recapitalisation roadmap for PSB in the current fiscal as the institutions face additional burden to meet the interest on interest obligation for all its borrowers while changes in valuation norms AT1 bonds by Sebi will make the instrument less attractive for banks to raise their capital. The Budget allocated Rs 20,000 crore towards recapitalisation of PSBs to help them consolidate their financial capacity.
