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Capital infusion for PSUs to be decided post Q4 earnings: BBB

The Bank Board Bureau (BBB) chief Vinod Rai on Friday met up with public sector bank heads to discuss the burning issue of stressed assets and to see whether consolidation can be expected in the sector.

While addressing the press, Rai said that all PSU banks are facing non-performing asset (NPA) issues and capital infusion to ease them will be decided post the fourth quarter earnings only.

“The results are being declared now; the audit is going on. Only after that the government will take a view on how much is to be infused,” he said.

Infrastructure, he said, is the biggest contributor to bad loans for all public lenders.

On the issue of government’s stake sale in IDBI Bank, Rai said that the target date for this stake sale is much closer than six months. Earlier reports had suggested that the stake sale might get delayed as the government wanted to wait for the bank’s financials to improve.

The government in December gave approval to IDBI Bank for raising Rs 3,771 crore during the year, by way of Qualified Institutional Placement (QIP), a move which will dilute its holding by about 26 percent in the lender.

The government’s holding in the bank stands at 80.16 percent.

(With inputs from PTI)

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