FM Nirmala Sitharaman on Banks: Many major decisions are taken from time to time for the banks by the Central Government. After the privatization of banks, the government has taken such a decision, which may shock you. Let's know the complete information about this.

Many major decisions are taken from time to time for the banks by the Central Government. After the privatization of banks, the government has taken such a decision, which may shock you. A few days are left for the government's budget (Budget 2023). Meanwhile, the government has said that it will not infuse capital into banks in this budget.

Less possibility of infusing new capital

According to the information received from the sources, due to the better financial condition of public sector banks, the possibility of announcement of new capital infusion by the government in the budget of the next financial year is less visible. The capital adequacy ratio of public sector banks has exceeded the regulatory requirement and is currently in the range of 14 percent to 20 percent.

Raising funds from the market

Let us tell you that these banks are raising funds from the market to increase their resources. Apart from this, they are also adopting the method of selling their non-core assets.

The government last infused capital in public sector banks in the financial year 2021-22. It had earmarked Rs 20,000 crore for bank recapitalization through a supplementary demand grant.

How much capital has been infused in the last 5 years?

During the last five financial years i.e. 2016-17 to 2020-21, capital of Rs 3,10,997 crore has been infused by the government in public sector banks. Of this, Rs 34,997 crore was arranged through budget allocation while Rs 2.76 lakh crore was raised by issuing recapitalization bonds to these banks.

Nirmala Sitharaman will present the budget

Finance Minister Nirmala Sitharaman will present the budget for the financial year 2023-24 on February 1. This will be the last full budget of the current tenure of the Narendra Modi government as general elections are due next year.

12 banks earned a profit of 15,306 crores

All 12 public sector banks earned a total profit of Rs 15,306 crore in the first quarter of the current financial year. In the second quarter, this amount increased to Rs 25,685 crore. If compared to a year ago, the profit of these banks increased by nine percent in the first quarter and by 50 percent in the second quarter.

SBI earned a profit of 13,265 crores

The country's largest bank State Bank of India (SBI) has earned the highest-ever profit of Rs 13,265 crore in the second quarter. Compared to the same quarter a year ago, this growth was 74 percent.

The total profit of banks increased by 32 percent

In the first half of the current financial year, the total profit of public sector banks increased by 32 percent to Rs 40,991 crore. Earlier, in the financial year 2021-22, despite the challenges of the Kovid epidemic, the total profit of these banks had more than doubled to Rs 66,539 crore.

Finance Minister recently took this decision

Many public sector banks also announced dividends in the last financial year. A total of nine public sector banks had distributed Rs 7,867 crore as dividends to the shareholders. Finance Minister Nirmala Sitharaman recently said that the efforts taken to remove the problem of bad loans have started yielding results and the profits of public sector banks have started increasing.