What is recapitalization of PSB?
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What is recapitalization of PSB?
The government refrained from committing any capital for the PSBs in the Budget 2020-21. Finance Minister Nirmala Sitharaman on Monday said the government will infuse ₹ 20,000 crore into public sector banks (PSBs) in 2021-22 to meet the regulatory norms.
Why does India need PSB?
PSB coverage Almost half of them are spread out in the rural and semi-urban areas. This geographical spread by itself contributed immensely to the inculcation of banking habits amongst the people in the interior parts of the country. No need to say that in all this, PSU banks have played a stellar role.
Which PSB is best?
Best Public Sector (PSU) Banks in India 2021
| List of PSU Banks | Number of Branches |
|---|---|
| State Bank of India (SBI) | 24000 |
| Punjab National Bank (With Merger of Oriental Bank of Commerce and United Bank of India) | 11437 |
| Bank of Baroda (With Merger of Dena Bank & Vijaya Bank) | 8581 |
| Canara Bank (With Merger of Syndicate Bank) | 10391 |
What are recap bonds?
Weak balance sheets of public sector banks warrant infusion of equity capital by the government. Recapitalisation is liquidity neutral for the government when financed via an issue of government securities that a recapitalised bank is mandated to purchase.
What does recapitalization mean?
Recapitalization is the process of restructuring a company’s debt and equity mixture, often to stabilize a company’s capital structure. The process mainly involves the exchange of one form of financing for another, such as removing preferred shares from the company’s capital structure and replacing them with bonds.
What amount of capital infusion was announced by the government for banks in fiscal 2020 21?
Rs 14,500 crore
The Central Government has announced to infuse Rs 14,500 crore in four state-owned lenders namely Central Bank of India, Indian Overseas Bank, Bank of India and UCO Bank in 2020-21, by issuing non-interest bearing bonds to these banks.
Is privatisation of PSB good for India?
The financial health of the economy is badly affected by the rising NPA issue. Privatization of PSBs will not end the NPA problem, but will surely aid in effectively bringing it down.
How many PSB are there in India?
12
With this, the total number of PSBs in India came down from 27 in 2017 to 12. These 12 banks now consist of six merged banks – SBI, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India and Indian Bank.
WHO issued zero coupon bonds India?
Zero coupon bonds can work wonders if used meticulously and in sync with your investment objectives. Note: Apart from NABARD, only a few Government Organizations with the approval from the Finance Ministry are authorized to issue zero coupon bonds.
What is Dicgc Upsc?
DICGC insures all bank deposits, such as saving, fixed, current, recurring, etc. except the following types of deposits: Deposits of the State Land Development Banks with the State co-operative banks. Any amount due on account of any deposit received outside India.