Govt to infuse Rs 28,615 cr in these 7 Public Sector Banks soon

The government is likely to infuse Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds by the end of this month, sources said on Thursday.

The amount infused will help the banks meet regulatory capital requirement, and its disbursement might take place before December 31, sources said.

Out of these seven PSBs, Bank of India is likely to get the highest amount of Rs 10,086 crore, followed by Oriental Bank of Commerce, which might get Rs 5,500 crore through recapitalisation bonds, sources added.

Other banks that are likely to receive capital infusion in this round included Bank of Maharashtra which may get Rs 4,498 crore, UCO Bank (Rs 3,056 crore) and United Bank of India (Rs 2,159 crore).

The government had earlier announced an infusion of Rs 65,000 crore in PSBs in 2018-19, of which Rs 23,000 crore has already been disbursed, while Rs 42,000 crore is remaining.

Earlier this month, Finance Minister Arun Jaitley said the government would put an additional Rs 41,000 crore in PSBs over and above what was announced earlier.

On December 20, the government sought Parliament’s approval for infusion of an additional Rs 41,000 crore.

The recapitalisation, the finance minister said, would enhance the lending capacity of PSBs and help them come out of the Reserve Bank of India’s Prompt Corrective Action (PCA) framework.

1 thought on “Govt to infuse Rs 28,615 cr in these 7 Public Sector Banks soon

  1. IBA AND GOI HAVE NO MONEY TO PAY PENSION AND UPDATION OF PENSION DESPITE CLEAR CUT STATUTORY PROVISIONS AND APEX COURT JUDGEMENTS, GIANT DEFAULTERS LIKE VIJAY MALLYA, NIRAV MODI AND KOTHARI
    ARE THE MAJOR PLAYERS IN THE FIELD OF NPA/STRESSED ASSETS. THIS WILL ONLY WEAKEN THE ECONOMY OF
    THE NATION AND MAKE FURTHER EROSION IN THE EQUITY OF PUBLIC SECTOR BANKS.

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