Govt to infuse Rs 830 bn into PSBs, seeks Parliament's nod for Rs 410 bn

The infusion is aimed at helping better-performing banks under prompt corrective action (PCA) to come out of this category

The government will infuse Rs 830 billion into public sector banks in the remaining months of 2018-19, taking capital injection into lenders to Rs 1.06 trillion in the year.

Of this, it has sought Parliament’s approval for Rs 410 billion through the second batch of the supplementary demand for grants. The Budget had announced a capital infusion of Rs 650 billion.

Among various objectives, the infusion is aimed at helping better-performing banks under prompt corrective action (PCA) to come out of the category, Finance Minister Arun Jaitley told reporters.

The performance will be judged on the basis of decline in