PSU banks may get more capital in Q4

The government, in Budget 2021-22, made an allocation of ₹20,000 crore for capital infusion in the state-owned banks

Photo used for representational purpose only. A man speaks on the phone outside an ICICI Bank branch in Kolkata. File

The Centre is likely to pump capital in public sector banks during the last quarter of the current financial year to meet the regulatory requirements.

The government, in Budget 2021-22, made an allocation of ₹20,000 crore for capital infusion in the state-owned banks.

The capital position of banks would be reviewed in the next quarter, and depending on the requirement, the infusion will be made to meet the regulatory needs.

Going forward, sources said, the rise in stressed assets would determine capital requirement.