December 21, 2018 / 4:31 AM / 4 months ago

BUZZ-Capital infusion in India's public sector banks may not ensure growth - Citi

** Capital infusion in India’s public sector (PSU) banks will ensure banks remain solvent, but may not help growth - Citi

** Citi says capital might help some banks to come out of prompt corrective action, but not sure if there will be enough capital left for growth after providing for non performing assets (NPA) as NPA levels remain high

** Citi says of planned market capital raise of 580 bln rupees ($8.29 bln), banks have been able to raise only 180 bln rupees; govt is trying to bridge the shortfall in market capital raising by infusing additional 410 bln rupees

** State Bank Of India and Bank Of Baroda are adequately capitalized for growth - Citi

** As of last close, NSE PSU bank index had declined about 17.6 pct this year ($1 = 69.9800 Indian rupees)

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