Government Announces Rs 48,239 Crore To Infuse In 12 Public Sector Undertaking (PSU) Bank

| February 20 , 2019 , 19:59 IST

The Finance Ministry of India on Wednesday announced to infuse Rs 48,239 crore in PSU Banks. Those 12 banks will be Allahabad Bank, Corporation Bank, Bank of India, Bank of Maharastra, Punjab national bank, Union Bank, Andhra Bank, Syndicate Bank, Central Bank, United Bank, UCO Bank, and IOB.

In a Tweet, Rajeev Kumar, secretary, Department of Financial Services said that the banks would receive the capital to “equip better performing PCA banks to be above the regulatory capital threshold, to help banks that are out of PCA to remain so and equip non PCA banks to stay above regulatory norms of PCA”.

In December 2018, the government enhanced bank recapitalization outlay from Rs 65,000 crore to Rs 1.06 lakh crore for the current fiscal. As of now, a total amount of Rs 100,958 lakh crore has been infused into PSBs.

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The government in December had infused Rs 28,615 crore into seven public sector banks (PSBs) through recapitalization bonds.

The government during the revised budget of 2018-19 had upped the recap bond allocation from Rs 65,000 crore to Rs 1.06 lakh crore.

Kumar said that government has infused Rs 1.01 lakh crore in FY19 and has “withheld Rs 5,000 crore as a cushion in case further recap is required”. He said that the government was eyeing recoveries worth Rs 1.8  lakh crore in 2018-19.

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