Govt to in­ject ad­di­tional ` 5,050 cr into PSBs soon

The Financial Express - - MONEY & MARKETS -

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.

PTI

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