Public sector banks need to raise Rs1.10 trillion from markets, including FPO, to meet Basel III requirements, which will kick in from March 2019. Photo: MintNew Delhi: Stock prices on the mend, the finance ministry will nudge at least six public sector banks to hit markets to raise funds and ease the pressure on the exchequer of pumping in capital as per the Indradhanush plan. “Time has come for banks to tap capital market and we think that at least half a dozen banks would take advantage of the opportunity and raise capital from the market during the current fiscal,” a senior finance ministry official told PTI. As per the scheme, public sector banks need to raise Rs1.10 trillion from markets, including follow-on public offer (FPO), to meet Basel III requirements, which will kick in from March 2019. This will be over and above Rs70,000 crore banks will get as capital support from the government.

Source: Mint April 16, 2017 11:03 UTC