As many as eight public sector banks (PSBs) have decided to raise capital from the market within four months as part of the ₹2.11 lakh crore recapitalisation plan, according to official sources.
Some banks have already got approval from the Finance Ministry while others are in the process of getting the green signal for raising capital either through private placement or rights issue, they said.
Most banks are preferring the Qualified Institutional Placement (QIP) route, sources said, adding that Punjab National Bank (PNB) would be the first to hit the market to raise ₹5,000 crore.
Bank of Baroda, Bank of India, Union Bank of India Allahabad Bank and Andhra Bank are also gearing up for the share sale, they said.
Finance Minister Arun Jaitley in October had announced an unprecedented ₹2.11 lakh crore two-year road map to strengthen PSBs, reeling under high non performing assets (NPAs) or bad loans.
