MUMBAI: India’s public sector banks will require ₹45,000-82,500 crore of capital in FY21 as the covid-19 pandemic is expected to increase asset quality pressures, said rating agency Icra.
According to a report by Icra on Thursday, with earlier expectations of improved asset quality and profitability, the capital requirements for public sector banks (PSBs) was estimated at ₹10,000-20,000 crore for FY21 and the government had also expected PSBs to raise capital from markets.
However, now with worn out capital cushions and expected increase in stress on asset quality and profitability, PSBs will require ₹45,000-82,500 crore of capital even in a scenario of low credit growth of 3-4% during FY21. “Further, the investors’ appetite towards these