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Indian banks rush to raise money to combat loan losses due to Covid-19

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MUMBAI: A number of Indian banks are looking to bolster their capital base through equity issuances as a safeguard against the covid-19 induced economic shock eroding their capital adequacy.

There are widespread apprehensions that the suspension of businesses due to the lockdown will result in borrowers finding it tough to repay loans which may increase slippages and force lenders to go for higher provisioning and loan write-offs from the September quarter onwards.

Banks, including IDFC First Bank, RBL Bank, Kotak Mahindra Bank, Bank of Baroda, Yes Bank, IndusInd Bank, plan to raise at least ₹35,000 crore via share sale.

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