No Pain, No Gain – PSU Banks’ Moment of Truth
If at all there was a blunt message for anyone in the Union Budget, it was for state-run banks – no more doles. After setting financial parameters to achieve with his Indradhanush in August 2015 on infusion of fresh capital, finance minister Arun Jaitley has sanctioned just Rs 10,000 crore for banks shows his resolve to see results from banks before opening his purse strings. For a segment that needs at least Rs 75,000 crore in the next two years as estimated by ratings company India Ratings, the sanctioned amount is just a drop in the ocean which may not be sufficient to fund the economic growth aspirations. And it is not going to be easy for these banks to raise funds from the market unlike their private peers.