The government today announced infusion of Rs. 22,915 crore into 13 public sector (PSU) banks to help them cope with their non-performing loans and shore up their capitals levels.
Approximately, seventy five percent of the fund infusion will be made immediately, while the remaining amount will be linked to performance.
As per a Finance Ministry release, "The capital infusion exercise for the current year is based on an assessment of need as assessed from the CAGR of credit growth for the last five years, banks' own projections of credit growth and an objective assessment of the potential for growth of each public sector bank."
"The amounts to be infused differ for banks depending on their sizes and needs: SBI (Rs. 7,575 crore), IOB (Rs. 3,101 crore), PNB (Rs. 2,816 crore), BoB (Rs. 1,784 crore), Central Bank (Rs. 1,729 crore), Syndicate Bank (Rs. 1,034 crore), UCO Bank (Rs. 1,033 crore), Canara Bank (Rs. 997 crore), United Bank (Rs. 810 crore), Union Bank (Rs. 721 crore), Corporation Bank (Rs. 677 crore), Dena Bank (Rs. 594 crore) and Allahabad Bank (Rs. 44 crore)," the release said.
The infusion is part of the plan chalked out by the government under its Indradhanush initiative to infuse Rs. 70,000 crore in banks till FY19.
