Thursday 10 July 2014

Stocks of PSU banks down over 4% after Budget 2014 announcement

 Shares of public sector banks declined by as much as 4.3 per cent after Finance Minister Arun Jaitley today said the lenders would require Rs 2.40 lakh crore capital by 2018 to meet global Basel III norms. 

SBI was trading 2 per cent lower, while Indian Bank dropped 4.31 per cent on the BSE. 


Proposing to provide greater autonomy to public sector banks, Finance Minister Arun Jaitley today said these lenders would require Rs 2.40 lakh crore capital by 2018 to meet global Basel III norms. 

"To be in line with the Basel III norms, there is requirement to infuse Rs 2.40 lakh crore as equity by 2018 in our banks (public sector banks). To meet this huge capital requirement, we need to raise additional resources to fill this obligation," he said in the Budget speech in Parliament. 

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