Govt. approves funds recapitalisation of 12 PSU banks |
In an apparent attempt to revive the banking sector, the government has approved recapitalisation of 6.8 billion dollars in 12 public sector banks in this fiscal to help them maintain regulatory capital requirements and finance growth plans. Financial Services Secretary Rajiv Kumar said that the recapitalization will help these banks perform better. He said, the government will infuse over 1.2 billion dollars in Corporation Bank and 971.7 million dollars in Allahabad Bank. They are better-performing banks currently under the Prompt Corrective Action (PCA) supervision of the RBI. Besides, 653 million dollars will be provided Bank of India and 28.8 million dollars to Bank of Maharashtra. These banks have recently come out of the regulatory supervisory framework PCA of the RBI. Mr Kumar also said, Punjab National Bank will get over 831 million dollars, Union Bank of India 579 million dollars, Andhra Bank 458.8 million dollars and Syndicate Bank will get over 225 million dollars. The government will also pump in 1.7 billion dollars in Central Bank of India.
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