Government Infuse Rs 22,915 Crore Capital in Public Sector Banks

Central Government Infuse Rs 22,915 Crore Capital in various Public Sector Banks as per the requirement of individual banks depending on the various criteria.

The government in July had announced the first round of capital infusion of Rs 22,915 crore for 13 banks.

The capital infusion in the different public sector bank for the current fiscal is based on an assessment of need as assessed from the compounded annual growth rate (CAGR) of credit growth for the last five years,

Capital infusion also based on the individual Banks’ own projections of credit growth and an objective assessment of the potential for growth of each PSBs.

Out of the Rs 22,915 crore, different bank’s share are :

State Bank of India (SBI) – Rs 7,575 crore

Indian Overseas Bank – Rs 3,101 crore

Punjab National Bank – Rs 2,816 crore.

Bank of India – Rs 1,784 crore

Central Bank of India- Rs 1,729 crore

Syndicate Bank – Rs 1,034 crore

UCO Bank -Rs 1,033 crore

Canara Bank – Rs 997 crore,

United Bank of India – Rs 810 crore

Union Bank of India – Rs 721 crore

Corporation Bank – Rs 677 crore

Dena Bank – Rs 594 crore and

Allahabad Bank – Rs 44 crore

Read Also : Centre to infuse Rs 5000 Crore in Public Sector Banks

Finance Minister Arun Jaitley in his Budget speech for 2016-17 had proposed to allocate Rs 25,000 crore towards recapitalization of PSU banks. The balance amount will be released later which is linked to performance, with particular reference to greater efficiency, growth of both credit and deposits and reduction in the cost of operations.