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Public sector banks sufficiently capitalized
March 30, 2022
The government has infused capital amounting to ₹2,86,043 crore in public sector banks (PSBs) during the last five years and they are sufficiently capitalized, Parliament was informed on Tuesday. The government infused about ₹3 lakh crore between 2017-18 and 2021-22.
According to inputs received from Reserve Bank of India (RBI), Capital to Risk-weighted Assets Ratio (CRAR) of PSBs has improved substantially over the past three years, expanding from 12.20 percent toward the end of 2018-19 to 14.34 percent as of December 31, 2021, Minister of State for Finance Bhagwat K Karad said in a written reply to the Rajya Sabha.
“As reflected in their capital position as of December 31, 2021, PSBs are right now sufficiently capitalized,” he said.
With respect to General Insurance Corporation of India (GIC), Karad said, no proposal to privatize GIC is under consideration by the government as of now.
“Further, according to inputs received, total assets outstanding as of 31.3.2021 were ₹38.04 lakh crore and ₹1.35 lakh crore for LIC and GIC, respectively,” he said.
With the view of providing a greater measure of protection to depositors in banks, Karad said DICGC raised the limit of insurance cover for investors in insured banks from ₹1 lakh to ₹5 lakh for each depositor with effect from February 4, 2020.
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