"There will be a differential approach. The capital adequacy of all the banks will be maintained and thereafter it would be the performance and the potential based," he said here.
Yesterday, the government unveiled Rs 2.11 lakh crore two-year road map for strengthening NPA-hit public sector banks, which include re-capitalisation bonds, budgetary support, and equity dilution.
Kumar further said that bond issuance would be front loaded and would be spread over two fiscal.
Jaitley said the details of the recapitalisation bonds would be determined in the due course.
The programme entails mobilisation of capital, with maximum allocation in the current year through budgetary provisions of Rs 18,139 crore, and recapitalisation bonds to the tune of Rs 1.35 lakh crore over the next two years.
The balance would be raised by banks from the market by diluting government equity. The government's equity dilution would help banks to raise about Rs 58,000 crore. The government equity, as per the current policy, can come down to 52 per cent in state-owned banks.