PSBs Raise Rs. 1.54 Lakh Crore in Three Years via Equity and Bonds: MoS Finance

Public Sector Banks (PSBs) have raised a combined Rs. 1,53,978 crore over the last three financial years,
reflecting robust investor confidence and stronger balance sheets, the Minister of State for Finance, Shri Pankaj Chaudhary, has said.

The capital mobilised includes equity and Basel III–compliant Additional Tier-I (AT-1) and Tier-II bonds:
Rs. 44,942 crore in FY2022-23, Rs. 57,380 crore in FY2023-24, and Rs. 51,656 crore in FY2024-25.

According to the Minister, fresh capital raising helps PSBs in multiple ways: meeting regulatory capital adequacy requirements,
supporting credit growth, complying with minimum public shareholding norms by increasing public float, replenishing AT-1 bonds
on which call options are exercised, strengthening overall capital positions, and creating buffers for future business needs.

The government noted that the improved financial strength of PSBs has bolstered market confidence, enabling them to access
capital markets periodically to fund lending and growth plans without relying solely on budgetary support.