Financial services companies gain on capital infusion plan
Shares of financial services companies surged on the government’s plant to infuse Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds by the end of this month, reported PTI. The recapitalisation, the finance minister said, would enhance the lending capacity of PSBs and help them come out of RBI’s PCA framework.
Capital infusion for PSU banks should broadly cover needs:
The planned capital infusion should broadly be enough to cover their capital needs. Latest tranche of infusion, according to reports, is largest for Bank of India which could possibly get bank out of prompt corrective action (PCA) framework. The brokerage said it continues to prefer corporate private banks like Axis Bank Ltd and ICICI Bank Ltd followed by state-owned State Bank of India Ltd.
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