The Finance Ministry will infuse the capital in the approved banks very soon. This can be done as early as this week itself, according to sources.
The list of identified banks include Central Bank of India, Indian Bank, UCO Bank, Oriental Bank of Commerce, Vijaya Bank and United Bank of India.
This amount is a part of the capital infusion plan worth Rs 25,000 crore to be infused in the current fiscal. Earlier, 13 public sector banks have been issued Rs 19,950 crore as support with SBI to get the highest amount of Rs 5,393 crore followed by Rs 2,455 crore to Bank of India. Some other banks to receive the fund were IDBI Banks – Rs 2,229 crore, Indian Overseas Bank – Rs 2,009 crore and Punjab National Bank got Rs 1,732 crore in its share.
Last year, a four-year revamp plan ‘Indradhanush’ was announced by the government to infuse Rs 70,000 crore in PSU banks. However, to meet their capital requirements in line with global risk norms Basel-III, they will still have a target to raise an additional Rs 1.1 lakh crore from the markets.
According to the plan, Rs 25,000 crore is to be given to the state-run banks this fiscal and also in the next fiscal. Besides, Rs 10,000 crore is to be infused in 2017-18 and 2018-19.