The infusion will be part of the remaining Rs 65,000 crore out of Rs 2.11 lakh crore capital infusion over two financial years
The government is likely to infuse Rs 11,3337 crore within next few days in five state-owned banks. The capital infusion will be made in Punjab National Bank (PNB), Allahabad Bank, Andhra Bank, Corporation Bank and India Overseas Bank (IOB), the finance ministry sources said.
The latest round of infusion is aimed at helping the banks meet the regulatory capital requirement, sources said.
Of the Rs 11,337 crore, Rs 2,816 crore will be infused in PNB, Rs 2,555 crore in Corporation Bank, Rs 2,157 crore in IOB, Rs 2,019 crore in Andhra Bank and Rs 1,790 crore in Allahabad Bank.
The fresh round of capital infusion may take place this week or latest by next week, sources said.
The infusion will be part of the remaining Rs 65,000 crore out of Rs 2.11 lakh crore capital infusion over two financial years.
In October 2017, the cabinet had approved a Rs 2.11 lakh crore recapitalisation plan for Public Sector Banks (PSBs). Of this, Rs 1.35 crore lakh crore was to be raised through recapitalisation bonds and the balance through raising of capital from the market. Out of Rs 1.35 lakh crore, the government has already infused about Rs 71,000 crore through recap bonds in the banks and balance would be done during this fiscal.
Some of these banks are facing acute shortage of capital and are at the risk of breaching the regulatory capital requirement, sources said. Some have come under pressure because of interest payment to their bond holders, sources added. A high level of bad loans has made it difficult for the banks to service these bonds from their own earnings. The banks are saddled with Rs 10 lakh crore of bad loans.
The PSBs require capital to deal with rising non-performing assets (NPAs) and spur credit growth.
The banks are also planning to tap the markets to raise over Rs 50,000 crore this fiscal. Out of 21 PSBs, 13 have already taken the approval of their boards or shareholders for raising capital through equity market.
CAPITAL DOSE
Rs 2,816 crore will be infused in PNB, Rs 2,555 crore in Corporation Bank, Rs 2,157 crore in IOB, Rs 2,019 crore in Andhra Bank and Rs 1,790 crore in Allahabad Bank
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "NPAs")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}