INSUBCONTINENT EXCLUSIVE:
Wednesday announced to pump in Rs 48,239 crore in 12 public sector banks this fiscal year to help them maintain regulatory capital
requirements and finance growth plans
With this funding, the total amount of capital infusion would increase to Rs 1,00,958 crore of the planned recapitalisation of Rs 1.06 lakh
capital infusion would be used as buffer for any contingency or growth capital for Bank of Baroda which is in the process of merging Dena
Bank and Vijaya Bank with itself
"It (pending Rs 5000 crore) may be used for any contingency or for growth capital wherever it is necessary including amalgamated entity of
said equipping these two better performing banks, currently under the Prompt Corrective Action (PCA) supervision of the Reserve Bank of
India (RBI), would help meet requisite capital thresholds of 7.375 CET-1 ratio, 8.875 per cent Tier I ratio, 10.875 per cent of
crore will be provided to Bank of India and Bank of Maharashtra respectively
These banks have recently come out of the regulatory supervisory framework PCA of the RBI
Mr Kumar further said Punjab National Bank will get Rs 5,908 crore, Union Bank of India Rs 4,112 crore, Andhra Bank Rs 3,256 crore and
Bank, UCO Bank and Indian Overseas Bank.The government in December had increased the outlay by Rs 41,000 crore for infusion in public sector
As a result, the total recapitalisation in the current fiscal year from Rs 65,000 crore to Rs 1.06 lakh crore
Subsequently, the government infused Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds.
