Public sector banks raised Rs 58,700 crore from the market in the last financial year

Public sector banks raised Rs 58,700 crore from the market in the last financial year

Canara Bank raised an amount of Rs 2,000 crore through QIP. The total NPAs of public sector banks stood at Rs 6,16,616 crore as of March 31, 2021.

6.16 lakh crores of NPAs of public sector banks as on March 31, 2021.

Public sector banks have raised a record fund of Rs 58,700 crore from the market in the last financial year 2020-21. Banks have raised this amount in the form of debt and equity to strengthen their capital base. This amount includes Rs 4,500 crore raised by Bank of Baroda, Mumbai through Qualified Institutional Placement (QIP). Punjab National Bank raised Rs 3,788 crore through share sale on private placement basis.

With this, Canara Bank of Bangalore raised an amount of Rs 2,000 crore from QIP. A data has been collected on the basis of information sent to the stock exchanges. A senior public sector bank official said the successful series of QIPs shows that domestic and global investors have faith in state-run banks and their capability. Apart from this, 12 public sector banks raised funds from Tier I and Tier II bonds. In this way, the amount raised by banks from the market reached Rs 58,697 crore.

Improvement in the condition of banks

The condition of public sector banks has improved due to various measures taken by the government. The Non-Performing Assets (NPAs) of Public Sector Banks stood at Rs 7,39,541 crore as on March 31, 2019, which declined to Rs 6,78,317 crore as on March 31, 2020 and further reduced to Rs 6,78,317 crore as on March 31, 2021 (provisional) 16,616 crores came to Rs.

31,816 crores came

Due to this, public sector banks registered a profit of Rs 31,816 crore in 2020-21. This is the highest in five years. However, the economy declined by 7.3 percent during this period.

Also read, Alert! Big scam happening in the name of KYC updation, SBI warns, even if this work is done then the account will be empty

Also read, Foreign investors staggered, so far 6105 crores withdrawn from the market in the current financial year

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