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Public Sector Banks to raise Capital from Market by March 18

As part of government’s Rs.2.11 lac crore recapitalization plan, 8 Pubic Sector Banks are going to raise capital from market. Punjab National Bank will be the first to raise 5000 crores capital.

Some banks have already got approval from Finance Ministry for raising funds through private placements, while the others are in the process of getting approval.

Banks are mainly preferring QIP (Qualified Institutional Placement) route for raising capital. After PNB, Bank of Baroda, Bank of India, Union Bank of India, Allahabad Bank and Andhra Bank will raise the capital from market and to get the same by March 2018.

As per government’s plan to recapitalize the NPA hit public sectors banks, Rs. 1.35 lac crores will be raised by through re-capitalization bonds and Rs.58000 crores from market by diluting government stake. Government stake may go down to 52 percent.

Jai

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