The upcoming budget is unlikely to make any provision for recapitalisation of state-owned lenders, as over Rs 3.36 lakh crore has been spent on the banks in the last six years, according to rating agency ICRA.
The banks will raise capital through internal accruals and fundraising from the market, Icra said.
The agency said that the state-owned banks' stock of net non-performing assets has reduced to 2.8 per cent as of September 2021 from the 8 per cent level of March 2018.
The the recoveries from legacy NPAs as NARCL (National Asset Reconstruction Company) becomes operational could aid the bottom lines of the banks in the coming years, the agency said.
(With inputs from PTI)