Friday, October 7, 2022

Boost: Government to inject Rs 48,239 crore in 12 PSBs this fiscal

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PW Bureau

Finance ministry hopes the infusion of money will finance banks’ growth plans and assist in maintaining the requirements for regulatory capital

New Delhi: The government will inject Rs. 48,239 crore in 12 state-run banks in the fiscal year ending March 2019 to finance banks’ growth plans and assist in maintaining the requirements for regulatory capital, said Financial Services Secretary Rajiv Kumar. The finance ministry plans to infuse Corporation Bank with Rs. 9,086 crore and Allahabad Bank with Rs. 6,896 crore, the two “better-performing” banks under the Prompt Corrective Action (PCA) supervision of the Reserve Bank of India (RBI).

“The government will inject Rs. 48,239 crore in 12 state-run banks in the fiscal year ending March 2019 to finance banks’ growth plans and assist in maintaining the requirements for regulatory capital”

The government will also provide Rs. 4,638 crore and Rs. 205 crore to Bank of India and Bank of Maharashtra, banks recently coming out of RBI’s PCA framework. Kumar added that the government will put in Rs. 5,908 crore in Punjab National Bank, Rs. 4,112 crore in Union Bank of India, Rs. 3,256 crore in Andhra Bank and Rs. 1,603 crore in Syndicate Bank.

The government will also infuse Rs. 12,535 crore in Central Bank of India, United Bank, UCO Bank and Indian Overseas Bank, the four other banks currently under PCA.

Govt infused Rs 28,615 in 7 PSBs in December

Through recapitalisation bonds, the government had pumped in Rs. 28,615 crore into seven public sector banks in December.

The RBI in November eased pressure on public sector bank by deciding to extend the timeline for the full implementation of Basel 3 guidelines by a year.

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