The government may not have to inject fresh capital into the public sector banks (PSBs) as the one-time loan restructuring permitted by the RBI has reduced additional fund requirement by them.

Also the poor credit offtake on account of the coronavirus pandemic may obliterate the need for significant growth capital during the current fiscal, sources said.

There may not be a sudden surge in non-performing assets (NPAs) after the six-month moratorium comes to an end this month as it is followed by a one-time loan restructuring, sources said, adding, provisioning requirement is also quite low for the debt recast accounts.

Moreover, most of the public sector banks have taken approval in advance to raise tier-I and tier-II capital during the current fiscal depending on the need.

Despite all these, sources said, if at all there is a need for regulatory capital requirement by some public sector banks towards the end of the current fiscal, the government will provide that like it has done in the past.

In 2019-20, the government infused Rs 70,000 crore into PSBs to boost credit to give a strong impetus to the economy.

However, the government refrained from committing any capital in Union Budget 2020-21 for the PSBs, hoping that the lenders will raise funds from the market depending on the requirement.