New Delhi: For enhancing their capital and meeting global risk norms, the government will soon infuse Rs 6,990 crore in nine public sector banks including SBI, Bank of Baroda (BoB), Punjab National Bank.
An official statement said, “Out of the current year’s budget, the Government of India has decided to infuse Rs 6,990 crore in nine Public Sector Banks (PSBs) for which orders are being issued.” This year, it said, the government has adopted new criteria in which the banks which are more efficient would be rewarded with extra capital so that they can further strengthen their position.
This is the first tranche of capital infusion for which the government had allocated Rs 11,200 crore in the Budget for 2014-15. Among the beneficiaries, largest public sector lender SBI leads the pack with a capitalisation of Rs 2,970 crore, followed by BoB Rs 1,260 crore, PNB Rs 870 crore and Canara Bank Rs 570 crore. The capital infusion has been decided based on the performance of the bank. Better the performance higher will be the infusion.
