All. HC: No Authority to Additional Chief Medical Officer to File Complaint Under PCPNDT Act  ||  Kar. HC: Cannot Prosecute Second Spouse or Their Family for Bigamy Under Section 494 IPC  ||  Calcutta High Court: Person Seeking to Contest Elections is Deemed Public Interest  ||  Mad HC: In Absence of Prohibitory Order u/s 144 CrPC People Assembling and Demonstrating Not Offence  ||  Bom. HC: Legal Action to be Taken Against Doctor for Gross Negligence in Conducting Postmortem  ||  Bom. HC: Husband Directed to Pay Wife Compensation of Rs. 3 Crore for DV & Calling Her ‘Second-Hand’  ||  Delhi High Court Declines Relief to Chief Minister Arvind Kejriwal in Liquor Policy Scam Case  ||  Bom. HC: Banks to Show Evidence to Borrowers Before Invoking Circular on Wilful Default  ||  Calcutta HC: Husband and Wife Collectively Responsible for Creating Congenial Atmosphere  ||  Madras High Court: Hostel Services for Girl Students and Working Women Exempted from GST Regime    

Cabinet approves Infusion of capital by Government in IDBI Bank- (Press Information Bureau) (03 Sep 2019)

MANU/PIBU/1404/2019

Banking

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Infusion of Rs. 4,557 crore by Government in IDBI Bank. It will help in completing the process of IDBI Bank's turnaround and enable it to return to profitability and normal lending, and giving Government the option of recovering its investment at an opportune time.

IDBI Bank needs a one time infusion of capital to complete the exercise of dealing with its legacy book. It has already substantially cleaned up, reducing net NPA from peak of 18.8% in June 2018 to 8% in June 2019. The capital for this has to come from its shareholders. LIC is at 51% and is not allowed to go higher by the insurance regulator. Of the Rs. 9,300 crore needed, LIC would meet 51% (Rs. 4,743 crore). Remaining 49%, amounting to Rs. 4,557 crore, is proposed from Government as its share on one time basis.

After this infusion, IDBI Bank expects to be able to subsequently raise further capital on its own and expects to come out of RBI's Prompt Corrective Action (PCA) framework sometime next year. This cash neutral infusion will be through recap bonds i.e. Government infusing capital into the bank and the bank buying the recap bond from the Government the same day, with no impact on liquidity or current year's Budget.

Tags : INFUSION   CAPITAL   APPROVAL  

Share :        

Disclaimer | Copyright 2024 - All Rights Reserved