Govt Announces Rs 48,239 Crore Recapitalisation Plan for 12 Public Sector Banks

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New Delhi: The finance ministry on Wednesday announced to pump in Rs 48,239 crore 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 government will infuse Rs 9,086 crore in Corporation Bank and Rs 6,896 crore in Allahabad Bank – the two “better-performing” banks currently under the Prompt Corrective Action (PCA) supervision of the RBI.

Further, Rs 4,638 crore and Rs 205 crore will be provided to Bank of India and Bank of Maharashtra. These banks have recently come out of the regulatory supervisory framework PCA of the RBI.

Kumar further said Punjab National Bank will get Rs 5,908 crore, Union Bank of India Rs 4,112 crore, Andhra Bank Rs 3,256 crore and Syndicate Bank Rs 1,603 crore.
The government will pump in Rs 12,535 crore in four other banks under PCA – Central Bank of India, United Bank, UCO Bank and Indian Overseas Bank. The government in December had infused Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds.