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On Tuesday, the government has provided Rs 22,915 crore capital to 13 PSU banks including SBI, PNB, and IOB for enhancing their lending operations and enable them to raise more money from the market.
A Finance Ministry statement said that this is the first tranche of capital infusion for the fiscal and more funds would be provided in future depending upon the performance of PSU banks.
According to the statement “75 percent of the amount… is being released now to provide liquidity support for lending operations as also to enable banks to raise funds from the market. The remaining amount, to be released later, (will be) linked to performance with particular reference to greater efficiency, growth of both credit and deposits and reduction in the cost of operations.”
