cag | Finance Ministry | PSU recapitalisation
The Comptroller and Auditor General of India (CAG) has written to the finance ministry seeking little print referring to the continued performance audit of government’s wide recapitalisation excercise of public sector banks (PSBs).
CAG is doing performance audit on recapitalisation ofPSBs after 2016-17 and it has written a letter to the Division of Monetary Products and services, Ministry of Finance, seeking different records, together kredittlån rationale for distribution of capital among different PSBs, sources said.
The Executive of India made capital infusion to the tune of Rs 90,000 crore in 2017-18. This rose to Rs 1.06 lakh crore kredittlånin the following year. All one of the best design via the closing monetary year, the capital infusion via bonds modified into Rs 70,000 crore.
For the hot fiscal, the government has earmarked Rs 20,000 crore for the capital infusion into the PSBs. Of this, the government allocated Rs 5,500 crore to Punjab & Sind Bank in November 2020 for meeting the regulatory requirement prescribed below the Basel III guidelines.
The audit will most likely be going to analyse the influence of capital infusion in PSBs and one of the best design it has been able to give a boost to the monetary parameters corresponding to Return on Assets (ROA), Return on Equity (ROE) and price of boost of advances, sources said.
In its closing report launched in July 2017, CAG had identified some shortcomings in distribution of capital to reasonably a few banks.
It had also raised doubts over chance of PSU banks raising about Rs 1 lakh crore from market by 2019.
“The rationale for distribution of government of India capital among different PSBs modified into no longer discovered on narrative in all cases. Some banks which didn’t qualify for extra capital as per made up our minds norms accept as true kredittlån been infused kredittlån capital, a bank modified into infused kredittlån more capital than required, while others did now not receive the requisite capital to meet their capital adequacy necessities,” CAG had said.
The Centre infused Rs 1,18,724 crore in PSBs for the length of 2008-09 to 2016-17. CAG had said. Ofthis, SBI received the utmost capital infusion of Rs 26,948 crore, which is kind of 22.7 per cent of the total capital infusion.
IDBI Bank, Central Bank of India, Indian In a foreign nation Bank and Bank of India accept as true kredittlån been also critical beneficiaries kredittlån 8.77 per cent, 8.61 per cent, 7.88 per cent and 7.80 per cent of the total capital infusion, respectively. Punjab & Sind Bank and Indian Bank received the lowest capital infusion, at 0.20 per cent and zero.24 per cent of the total funds infused.
Central Bank of India and UCO Bank accept as true kredittlån been given capital in eight out of 9 years below audit scrutiny while Indian Bank received capital thoroughly once, in 2014-15.
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