Increased Capital Infusion in PSU Banks: Moody’s

  • The government should increase its proposed capital infusion in public sector banks because of a surge in bad loans.
  • The credit profile of public sector banks will worsen if the government does not increase capital allocation in public sector banks in the upcoming budget.
  • Moody’s estimates that the 11 public sector banks' external capital requirements will be Rs.1.45 lakh crore for the four fiscal years, from March 31, 2016 to March 31, 2019.