The government, on Wednesday, has announced to infuse Rs. 48,239 crores into 12 public sector banks in 2018-19 in order to help them meet capital requirements and accelerate lending to boost growth. These PSBs includes Allahabad Bank and Corporation Bank etc.
With a fund infusion of Rs. 9,086 crores, Corporation Bank will be the highest capital infusion receiver. Allahabad Bank, with the fund infusion of Rs. 6,896 crores are in second place. Among the other lenders, Punjab National Bank is set to receive Rs. 5,908 crores whereas the Union Bank of India will get Rs. 4,112 crores.
The two other PSBs Andhra Bank and Syndicate Bank will receive Rs. 3,256 crores and Rs. 1,603 crores, respectively. The current government’s plan to recapitalisation banks is aimed at meeting the revised Rs. 1.06 trillion targets to recapitalise banks this fiscal. The previous target for the state-owned banks at the beginning of the fiscal was set at Rs. 65000 crores.
According to the reports, the ongoing recapitalisation of PSBs, which will enable multiple banks to exit Reserve Bank of India’s (RBI) prompt corrective action (PCA) framework, will help the state control lenders to boost credit growth, especially to small businesses. As per now, the union government has injected Rs. 51,533 crore into state-run banks during the first three-quarters of the current fiscal.