PSU banks set to get ₹28,615 crore capital infusion

Of the seven state-owned banks, Bank of India is likely to get the highest amount of 10,086 crore

PTI
Updated27 Dec 2018
The government had earlier announced an infusion of Rs 65,000 crore into PSBs in 2018-19, of which Rs 23,000 crore had already been disbursed. Photo: Hemant Mishra/Mint
The government had earlier announced an infusion of Rs 65,000 crore into PSBs in 2018-19, of which Rs 23,000 crore had already been disbursed. Photo: Hemant Mishra/Mint

New Delhi: The government is likely to infuse 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds by the end of this month, sources said on Thursday. This will help banks meet regulatory capital requirement. The disbursement is likely to take place before December 31, sources added. Out of the seven state-owned banks, Bank of India is likely to get the highest amount of 10,086 crore, followed by Oriental Bank of Commerce, which might get 5,500 crore through recapitalisation bonds, according to sources.

Other banks that are likely to receive capital infusion in this round include Bank of Maharashtra (Rs 4,498 crore), UCO Bank (Rs 3,056 crore) and United Bank of India (Rs 2,159 crore).

The government had earlier announced an infusion of 65,000 crore into PSBs in 2018-19, of which 23,000 crore had already been disbursed. Earlier this month, finance minister Arun Jaitley had said public sector banks will get an capital additional infusion of 41,000 crore. On December 20, the government sought Parliament’s approval for the same.

The recapitalisation, the finance minister said, will enhance the lending capacity of public sector banks and help them come out of the Reserve Bank of India’s Prompt Corrective Action (PCA) framework. Eleven out of the total 21 PSBs are under the central bank’s PCA framework, which imposes lending restrictions on weak banks. These include Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeindustrybankingPSU banks set to get ₹28,615 crore capital infusion

Most Active Stocks

Indian Oil Corporation

168.30
10:27 AM | 2 JUL 2024
0.6 (0.36%)

Bharat Electronics

305.90
10:24 AM | 2 JUL 2024
-2 (-0.65%)

Tata Steel

174.50
10:28 AM | 2 JUL 2024
0.4 (0.23%)

Oil & Natural Gas Corporation

274.70
10:27 AM | 2 JUL 2024
1.7 (0.62%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

TV18 Broadcast

45.59
10:26 AM | 2 JUL 2024
4.05 (9.75%)

Solar Industries India

11,007.65
10:18 AM | 2 JUL 2024
908.7 (9%)

EPL

218.85
09:59 AM | 2 JUL 2024
16.9 (8.37%)

Sumitomo Chemical India

512.45
10:12 AM | 2 JUL 2024
34.2 (7.15%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    73,671.00399.00
    Chennai
    73,096.00-607.00
    Delhi
    73,024.0040.00
    Kolkata
    73,743.00543.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.98/L0.23
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsloanPremiumMint Shorts