The Government has announced a capital infusion of Rs 88,139 crore in 20 Public Sector Banks (PSBs) during the current fiscal, reported PTI. Finance Minister Arun Jaitley said that a detailed exercise was undertaken on the amount to be infused into the banks. Among all, IDBI gets the biggest share of Rs 10,610 crore.
There was an unprecedented announcement on the recapitalisation plan in October 2017 that amounted to Rs 2.1 lakh crore bank spread over the financial year 2017-18 and 2018-19.
In the current fiscal year 2017-18, the banks will get-
- State Bank of India: Rs 8,800 crore capital
- Bank of India: Rs 9,232 crore
- UCO Bank: Rs 6,507 crore
- Punjab National Bank: Rs 5,473 crore
- Bank of Baroda: Rs 5,375 crore
- Central Bank of India: Rs 5,158 crore
- Canara Bank - Rs 4,865 crore
- Indian Overseas Bank: Rs 4,694 crore
- Union Bank of India: Rs 4,524 crore
- Oriental Bank of Commerce: Rs 3,571 crore
- Dena Bank: Rs 3,045 crore
- Bank of Maharashtra: Rs 3,173 crore
- United Bank of India: Rs 2,634 crore
- Corporation Bank: Rs 2,187 crore
- Syndicate Bank: Rs 2,839 crore
- Andhra Bank: Rs 1,890 crore
- Allahabad Bank: Rs 1,500 crore
- Punjab and Sind Bank: Rs 785 crore
The PSBs are faced with mounting non-performing assets (NPAs) also called bad loans, putting the financial sector under stress, and need to be recapitalized. Through this plan, the government is exercising its responsibility of keeping the PSBs in good health.