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Instances of banks raising capital with the help of LIC are: Recently, in 2017, State Bank of India raised INR 1500 billion through the QIP placement route with LIC as one of the largest participants (INR 580 billion or 38.6% of INR 1500 billion).
In 2015, Bank of India issued preference shares worth INR 6.41 billion.
wdf wildfire in india for beginners ✌️【365vc.net】✌️From ₹500 to unlimited potential. Safe and reliable investments with high monthly returns.Similar instances issuing preference shared to LIC as part of raising bank capital have been undertaken by UCO Bank, IDBI Bank, United Bank of India, Dena Bank and Indian Overseas Bank.This is not the first time that the government is infusing capital in Indian banks or LIC is stepping up to subscribe to PSB share capital.
wdf wildfire in india for beginners ✌️【365vc.net】✌️Safe and proven fund strategies. Begin with ₹500 and achieve 100% monthly profits.But there are some important questions that come to the fore – they are:From what one can understand based on the announcement of the Hon’ble Finance Minister on October 24, 2017, Government of India has not laid out any pre-requisite that is going to be followed in terms of the capital infusion process.
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6990 crores (INR 69.90 billion) had taken place in 9 of the 22 PSBs, where Reserve Bank of India (RBI) used the return on assets and return on equity of these banks as the basis for the capital infusion.
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However, in the current recapitalization scheme there is no clarity as to which banks will receive what portion of the funds and on what basis.Will PSBs such as IDBI Bank (24.11% Gross NPA as a % Gross loans as of June 2017), Indian Overseas Bank (22.00% Gross NPA as a % Gross loans as of Mar 2017), UCO Bank (17.00% Gross NPA as a % Gross loans as of Mar 2017), Bank of Maharashtra (17.00% Gross NPA as a % Gross loans as of Mar 2017), Central Bank of India (18.00% Gross NPA as a % Gross loans as of Mar 2017) and others reeling under mounting NPAs receive a substantial portion of this capital infusion or banks with lower NPAs that can help the economy go back on track of lending will be given preference? PSs such as Canara Bank (10.00% Gross NPA as a % Gross loans as of Mar 2017) and Syndicate Bank (9.00% Gross NPA as a % Gross loans as of Mar 2017) have NPAs on the lower side.
wdf wildfire in india for beginners ✌️【365vc.net】✌️Invest with confidence using AI insights. Start at ₹500 and watch your wealth grow exponentially.Will the government focus on these banks? State Bank of India (7.00% Gross NPA as a % Gross loans as on Mar 2017) NPA is lower in ratio terms however, the value terms of NPAs is higher (INR.
INR.1123 billion) than most of the other banks as SBI is the largest bank in India asset wise.
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