The finance ministry has told the public sector banks to prepare plans for raising resources through markets, including IPOs and sale of assets. This follows the government’s decision to infuse as much as Rs 22,915 crore into 13 PSU banks. The ministry is reported to have told the banks that they should make use of this fund infusion to raise more funds from the markets. The suggestion came at a recent meeting of the CFOs of the public sector banks with finance ministry officials recently. It is expected that around 75% of the allocated among would be made available to the banks immediately and the balance will be disbursed based on the performance of the banks. The fund infusion will increase the government holding in these banks. In fact, the government holding has been preventing these banks from raising funds from the public.
