Government on Tuesday allocated Rs 22,915 crore as capital infusion in 13 public sector banks. The largest chunk of Rs 7,575 crore was released for SBI, followed by Rs 3,101 crore for Indian Overseas Bank and Rs 2,816 crore for Punjab National Bank, a press release said.
Other banks include Allahabad Bank, Bank of India, Canara Bank, Central bank of India, corporation bank, dena bank, Syndicate bank, UCO Bank, Union Bank Of India and United Bank of India.
Consequent upon the above exercise, 75% of the amount collected for each bank is being released now to provide liquidity support for lending operations as also to enable banks to raise funds from the market, the statement said.
The remaining amount, to be released later is linked to performance, with particular reference to greater efficiency, growth of both credit and deposits and reduction in the cost of operations.
n line with the announcements made under Indradhanush and the Union Budget, Government has undertaken an exercise to assess the capitalization needs of Public Sector Banks during the year 2016-17.
The capital infusion exercise for the current year is based on an assessment of need as assessed from the CAGR of credit growth for the last five years, banks' own projections of credit growth and an objective assessment of the potential for growth of each Public Sector Bank.