No change to infusion plans
New Delhi, Nov. 23: The finance ministry would not curtail its capital infusion plan for this financial year even as state-owned banks would be needing fewer funds following the RBI’s decision to defer the deadline to meet Basel III norms by a year, according to sources.
Under the new dispensation, the capital infusion by the government in public sector banks for meeting the capital buffer norms would come down to around `15,000-20,000 crore, sources said.
However, there will not be any reduction in the capital funding plan as announced in October last year despite a lower requirement due to the extension of the deadline for meeting the CCB of
2.5 per cent until March
2020, sources said. The capital infusion would help improve the financial health of banks,
■ RBI is expected to keep the key policy rates unchanged at its policy review meet next month, amid easing global crude oil prices and robust agriculture production, says a report.
■ D&B expects the CPI inflation to be in the range of
2.8-3% and WPI inflation to be in the range of
4.8-5% during November this year.
The risks emanating from global crude oil prices have eased to an extent as oil prices are likely to fall or remain subdued in the near term. This has partially dispelled concerns over one of the primary factors affecting India’s current account deficit, fiscal slippage and inflationary dynamics.
sources said, adding that some banks would get necessary regulatory capital while others would get it for fueling growth, they clarified.
Earlier this week, the RBI in the central board meeting decided to extend the implementation of the last tranche of 0.625 per cent of capital conservation buffer by a year to March 2020.
— PTI