BackUnion Budget 2017: Govt to infuse only Rs10,000 crore in PSU banks
Arun Jaitley in his Budget speech says the government will infuse Rs10,000 crore in public sector banks in the next fiscal and more will be provided if required
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New Delhi: The government will infuse Rs10,000 crore in public sector banks in the next fiscal and more will be provided if required, finance minister Arun Jaitley said on Wednesday.
“As per the Indradhanush plan, the public sector banks will be provided with Rs10,000 crore in the next fiscal. Additional allocation would be made if required," he said while presenting Budget 2017-18.
Under Indradhanush roadmap announced in 2015, the government will infuse Rs70,000 crore in state banks over four years while they will have to raise a further Rs1.1 lakh crore from the markets to meet their capital requirement in line with global risk norms, known as Basel—III.
In line with the blueprint, public sector banks has been given Rs25,000 crore in each fiscal, 2015—16 and 2016—17. Besides, Rs10,000 crore each would be infused in 2017—18 and 2018—19.
The government has already announced fund infusion of Rs22,915 crore, out of the Rs25,000 crore earmarked for 13 PSBs for the current fiscal. Of this, 75% has already been released to them.
The first tranche was announced with the objective of enhancing their lending operations and enabling them to raise more money from the market.
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