FY18: PSU banks plan to raise Rs 58,000 crore through equity dilution

This fiscal year, in order to meet the norms of Base-III and to clean up the bank's balance sheets, all public sector banks ( including SBI, BOB &IDBI Bank) has planned to raise about Rs 58,000 crore through the equity dilution.

SBI, one of the leading banks, by the end of this year has planned to raise the amount of about Rs 15,000 crore via qualified institutional placement(QIP).

Along with SBI, many other banks like Bank of Baroda, Central Bank of India has also planned to raise the money from the capital market.  Bank of Baroda is expected to raise to Rs6000 crore and Rs 65,000 crore is targeted by Central Bank of India Oriental Bank of Commerce and IDBI Bank have received the approval from their respective boards to raise about Rs 5,000 crore each via the equity dilution.  

During this fiscal year, Union Bank, Corporation Bank, Syndicate Bank and Bank of Maharastra has planned to raise RS 4,950 crore, Rs 3,500 crore, Rs 3500 crore, Rs 2,000 crore respectively. Last fiscal, about Rs 1,250 crore has been raised by the Canara Bank from the rights issue to its shareholders.

As the level of the non-performing assets in the banks are soaring, they require the capitals to clean their balance sheets and to meet the Base-III norms.