Question : BANKS PROFITABILITY BEFORE BASEL HI NORMS

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(a) whether with a view to reduce the capital infusion the Government has asked the banks to raise profitability before Basel-Ill norms come into force; and

(b) if so, the details thereof?

Answer given by the minister


The Minister of State in the Ministry of Finance (Shri Namo Narain Meena)

(a) & (b): Government is committed to keep all the Public Sector Banks (PSBs) adequately capitalized. The PSBs have shown rise in their profitability in Financial Year 2011-12 over Financial Year 2010-11 which is desirable for any commercial entity.