Govt plans capital infusion worth Rs.85.9 billion in 10 PSBs

PSBs must sign a tripartite MoU to avail capital support

by Natasha Nadkar

The government has decided to infuse capital worth Rs.85.9 billion in 10 weak public sector banks (PSBs) for 2016-17. The capital allocation will be subject to adherence to quarterly milestones by bank boards, management, employees and unions. The identified PSBs will have to sign a tripartite MoU between the government, PSB management and employees of the concerned PSB. SBI Caps has been inducted to design a detailed bank-wise plan based on which the tripartite agreement can be signed. All India Bank Employees’ Association (AIBEA) has welcomed the move of capitalizing weak banks and stated their willingness to sign a MoU. A capital infusion of Rs.100 billion for PSBs was announced in the Union Budget of 2017-18.

Capital allocation in PSBs
PSBs Amount
  (Rs.in billion)
IDBI Bank 19
Bank of India 15
Uco Bank 11.5
Andhra Bank 11
Indian Overseas Bank 11
Dena Bank 6.0
Allahabad Bank 4.2
United Bank of India 4.2
Bank of Maharashtra 3.0
Central Bank of India 1.0
Total 85.9

References
1. http://www.livemint.com/Industry/76Kqw9FLKf9fD4HBUQBXvO/Govt-lays-down-strict-conditions-for-capital-infusioninPSU.html
CMIE STATISTICS
Unemployment Rate
Per cent
3.6 -0.1
Consumer Sentiments Index
Base September-December 2015
95.8 -0.2
Consumer Expectations Index
Base September-December 2015
96.8 0.0
Current Economic Conditions Index
Base September-December 2015
94.1 -0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Sep 16 Dec 16 Mar 17 Jun 17
New projects 2.37 1.46 2.92 1.64
Completed projects 2.23 0.94 1.81 1.10
Stalled projects 0.65 1.01 0.35 2.45
Revived projects 0.91 0.17 0.62 0.29
Implementation stalled projects 0.37 0.81 0.33 0.64
Updated on: 17 Aug 2017 8:20PM
Quarterly Financials of Listed Companies
(% change) Sep 16 Dec 16 Mar 17 Jun 17
All listed Companies
 Income 2.1 6.2 10.3 10.2
 Expenses 1.9 6.4 11.9 10.2
 Net profit 14.6 40.3 17.9 -16.1
 PAT margin (%) 6.9 6.1 6.1 6.0
 Count of Cos. 4,495 4,496 4,398 2,707
Non-financial Companies
 Income 0.6 6.0 11.8 10.8
 Expenses -0.2 7.3 15.5 10.7
 Net profit 26.6 24.6 -1.1 -20.6
 PAT margin (%) 6.9 6.2 6.3 6.1
 Net fixed assets -9.2 7.6
 Current assets 8.1 2.2
 Current liabilities 11.6 8.6
 Borrowings 3.1 4.9
 Reserves & surplus 8.4 6.5
 Count of Cos. 3,481 3,486 3,419 1,975
Numbers are net of P&E
Updated on: 17 Aug 2017 8:30PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.6 10.0 4.9 1.0
 Expenses 12.8 9.8 5.0 1.2
 Net profit 0.9 -2.3 1.3 -15.2
 PAT margin (%) 3.5 3.2 3.2 3.0
 Assets 14.3 12.3 9.3 8.8
 Net worth 9.6 9.6 8.8 7.6
 RONW (%) 6.8 6.2 6.1 5.3
 Count of Cos. 25,384 22,944 22,236 18,452
Non-financial Companies
 Income 11.9 9.7 4.1 0.0
 Expenses 12.2 9.3 4.2 -0.6
 Net profit -8.6 -2.6 -6.1 6.3
 PAT margin (%) 2.4 2.2 2.2 2.7
 Net fixed assets 12.9 11.6 13.0 13.9
 Net worth 7.8 8.6 7.4 6.9
 RONW (%) 5.5 5.1 4.9 5.6
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.1 2.0 1.9 2.0
 Net working capital cycle (days) 72 69 67 67
 Count of Cos. 19,804 18,286 17,814 15,125
Numbers are net of P&E
Updated on: 04 Aug 2017 3:37PM

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