There will be no announcement regarding infusion of capital in public sector banks in the budget: ICRA

Icra believes that no provision is likely to be made in the coming budget regarding capital infusion in government-controlled banks. Icra Ratings said in a statement on Thursday that in the last six years, the government has infused Rs 3.36 lakh crore in public sector banks.

Icra believes that no provision is likely to be made in the coming budget regarding capital infusion in government-controlled banks.

Budget 2022: Domestic rating agency Icra believes that no provision is likely to be made in the coming budget regarding capital infusion in government-controlled banks. Icra Ratings said in a statement on Thursday that in the last six years, the government has infused Rs 3.36 lakh crore in public sector banks. In such a situation, no such new provision is likely to be made in the budget for the financial year 2022-23. According to the statement, apart from raising funds from the market, the banks will raise capital from internal sources. He said that the lenders have the ability to raise capital at their own level.

The rating agency said that due to infusion of capital, the non-performing assets (NPA) of public sector banks came down to 2.8 per cent in September 2021, from eight per cent in March 2018. It can be said that in the past, the eyes of every year’s budget were on the bank recapitalization allocation. But Icra sees less possibility of this happening in this budget.

According to ICRA, banks can raise capital directly from the market due to the better position of their books of account and their earnings outlook improving.

Icra’s estimate on GDP

Let us tell you that according to ICRA, the real growth rate of GDP is estimated to be nine percent in the current financial year (2021-22) and the next financial year (2022-23). It has been said in a report. The report said that despite concerns about Omicron, the new form of Kovid-19, the growth rate of the economy is expected to remain high.

In the second quarter of the current financial year, July-September, the economic growth rate has been 8.4 percent. At the same time, in the first quarter April-June, the economy grew at the rate of 20.1 percent. Aditi Nair, Chief Economist of domestic rating agency ICRA, said in a report, “We stick to our forecast of nine per cent growth in the current fiscal with a clear ‘K’ shaped revival between the organized and unorganized sectors of the economy.” .”

The ‘K’ shaped revival refers to the different levels of revival in different sectors of the economy after the slowdown. He said that in the next financial year also, the Indian economy will grow at the rate of nine percent. Nair expects that by March 2022, the number of adults who have received both the vaccines will increase to 85-90 per cent.

(with PTI input)

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