According to Crisil, the Government's move to increase its stake in ten public sector banks to 58 per cent by infusing Rs 6,000-crore in capital will help the lenders improve their credit risk profiles.
The Union Cabinet had yesterday decided to infuse the additional capital to raise its holding in PSBs to a minimum of 58 per cent. Raising of stakes to 58 per cent will give banks additional headroom to raise funds from capital markets by diluting down the Government's equity till 51 per cent.
The infusion of Rs 6,000-crore is over and above the budget announcement of infusing Rs 15,000-crore in the banks.
Ten banks have the state's holding at less than 58 per cent currently which include Bank of Baroda , Oriental Bank of Commerce , Andhra Bank , Dena Bank , IDBI Bank and Vijaya Bank .
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