Govt to infuse Rs 83,000 cr in PSBs: FM
New Delhi: The government on Thursday said it will enhance the capital infusion in public sector banks to Rs 83,000 crore, taking the total to Rs 1.06 lakh crore for the fiscal. The capital will be pumped in over the next few months, Finance Minister Arun Jaitley said, adding that the move will increase the lending capacity of public sector banks (PSBs) as well as help some of them come out of RBI's watchlist.
The government had earlier announced infusion of Rs 65,000 crore in PSBs in 2018-19, of which Rs 23,000 crore has already been disbursed, while Rs 42,000 crore is remaining.
The government Thursday sought Parliament's approval for infusion of an additional Rs 41,000 crore.
This amount, sought to be infused in the banks through issue of government securities (recapitalisation bonds), is over and above the Rs 2.11 lakh crore recapitalisation plan announced in October 2017.
The recapitalisation, the finance minister said, will enhance the lending capacity of state-owned banks and help them come out of RBI's Prompt Corrective Action (PCA) framework.
"Now this Rs 1.06 lakh crore this year and Rs 83,000 crore which is remaining is going to be utilised under four different heads. The first of course is to ensure that banks meet their regulatory capital norms.