Government is planning to infuse additional capital of about Rs. 5,050 crore in some public sector banks this week, according to reports.
Parliament has approved Rs 5,050 crore for meeting additional expenditure on recapitalisation of public sector banks, as per a report. The 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, report added. It will be part of the Rs 25,000 crore capital infusion plan earmarked for the current fiscal.
Public sector banks in India. Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by a government. The shares of these banks are listed on stock exchanges. There are a total of 27 PSBs in India [19 Nationalised banks + 6 State bank group (SBI + 5 associates)+IDBI+BMB ].
- Last year, the government announced a revamp plan ‘Indradhanush’ to infuse Rs 70,000 crore in state-owned banks over four years, while they will have to raise a further Rs 1.1 lakh crore from the markets to meet their capital requirements in line with global risk norms Basel-III.
- In the first tranche, as many as 13 public sectors banks were given fund support of Rs 19,950 crore. Of this, SBI got the highest amount of Rs 5,393 crore followed by Bank of India Rs 2,455 crore.
So lets do:
- Who is the Union Finance minister of India?
- Government is planning to infuse additional capital of about Rs. 5,050 crore in some public sector banks
Source – The Hindu