New Delhi (02.08.2021): Defying economic disruptions due to COVID-19, public sector banks (PSBs) have managed to raise Rs 58,700 crore from markets in 2020-21 through a mix of debt and equity to enhance the capital base, which is a record. This included Rs 4,500 crore raised by Bank of Baroda from qualified institutional placement (QIP). Punjab National Bank mobilized Rs 3,788 crore through share sale on a private placement basis during the financial year ended March 31, 2021. Canara Bank raised Rs 2,000 crore from QIP, as per data collated from regulatory filings. In addition, 12 PSBs raised funds from Tier I and Tier II bonds taking the total fund mobilization to Rs 58,697 crore. Various reforms undertaken by the government including recognition, resolution and recapitalization resulted in a progressive decline in non-performing assets (NPAs) and a subsequent rise in profit. NPAs of PSBs had declined to Rs 7,39,541 crore as on March 31, 2019, Rs 6,78,317 crore on March 31, 2020 and further to Rs 6,16,616 crore as on March 31, 2021 (provisional data). Provision Coverage Ratio (PCR) at the same time increased sequentially to a high of 84 per cent. So, PSBs in aggregate recorded a profit of ₹31,816 crore, highest in five years, despite 7.3 per cent contraction in economy in 2020-21 due to pandemic. 
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PSBs manage to raise record Rs 58,700 crore from markets
By IndianMandarins - 2021-08-02 12:09:00
New Delhi (02.08.2021): Defying economic disruptions due to COVID-19, public sector banks (PSBs) have managed to raise Rs 58,700 crore from markets in 2020-21 through a mix of debt and equity to enhance the capital base, which is a record. This included Rs 4,500 crore raised by Bank of Baroda from qualified institutional placement (QIP). Punjab National Bank mobilized Rs 3,788 crore through share sale on a private placement basis during the financial year ended March 31, 2021.
Canara Bank raised Rs 2,000 crore from QIP, as per data collated from regulatory filings. In addition, 12 PSBs raised funds from Tier I and Tier II bonds taking the total fund mobilization to Rs 58,697 crore. Various reforms undertaken by the government including recognition, resolution and recapitalization resulted in a progressive decline in non-performing assets (NPAs) and a subsequent rise in profit.
NPAs of PSBs had declined to Rs 7,39,541 crore as on March 31, 2019, Rs 6,78,317 crore on March 31, 2020 and further to Rs 6,16,616 crore as on March 31, 2021 (provisional data). Provision Coverage Ratio (PCR) at the same time increased sequentially to a high of 84 per cent. So, PSBs in aggregate recorded a profit of ₹31,816 crore, highest in five years, despite 7.3 per cent contraction in economy in 2020-21 due to pandemic.
