Govt to inject additional ` 5,050 cr into PSBs soon
New Delhi, March 28: The government is likely to infuse additional capital of about ` 5,050 crore into some public sector banks this week. Parliament has already approved ` 5,050 crore for meeting additional expenditure on recapitalisation of public sector banks earlier this month.
The capital infusion by the finance ministry into the identified banks would be done soon, which could be as early as this week itself, sources said. Likely contenders for the fresh round of infusion include Central Bank of India, Indian Bank, UCO Bank, Oriental Bank of Commerce, Vijaya Bank and United Bank of India.
It will be part of the `25,000 crore capital infusion plan earmarked for the current fi- nancial year.
In the first tranche, as many as 13 public sectors banks were given fund sup- port of ` 19,950 crore. Of this, SBI got the highest amount of ` 5,393 crore followed by Bank of India `2,455 crore.
Besides, government infused ` 2,229 crore in IDBI Bank, Indian Overseas Bank ` 2,009 crore and Punjab National Bank `1,732 crore.
Last year, the government announced a revamp plan ‘Indradhanush’ to infuse ` 70,000 crore in state-owned banks over four years, while they will have to raise a further ` 1.1 lakh crore from the markets to meet their capital requirements in line with global risk norms Basel-III.
In line with the blueprint, PSU banks will get ` 25,000 crore this fiscal and also in the next fiscal. Besides, ` 10,000 crore each would be infused in 2017-18 and 2018-19.