7 PSU banks set to get Rs 28,615 crore lifeline in 4 days

New Delhi : The government is set to infuse Rs 28,615 crore into seven public sector banks through recapitalisation bonds in four days to help them meet regulatory capital requirement, official sources said.

Of the 7 state-owned banks, Bank of India may get the highest amount of Rs 10,086 crore, followed by Oriental Bank of Commerce (Rs 5,500 crore), sources said.

Other banks to receive capital in this round include Bank of Maharashtra (Rs 4,498 crore), UCO Bank (Rs 3,056 crore) and United Bank of India (Rs 2,159 crore).

While no official announcement has been made, banks have received letters from the ministry on recap and they are likely to notify exchanges on Friday.

The government had earlier announced infusion of Rs 65,000 crore into PSBs in 2018-19. Of this, Rs 23,000 crore has already been disbursed. Earlier this month, finance minister Arun Jaitley said PSBs would get Rs 41,000 crore additional capital and on December 20, the government sought Parliament’s approval for the same.

Recapitalisation, the finance minister said, will enhance PSB’s lending capacity and help them come out of the Reserve Bank of India’s prompt corrective action (PCA) framework. Eleven of the 21 PSBs are under the PCA framework, which imposes lending restrictions on them.

(Except for the headline, this story has not been edited by The Kashmir Monitor staff and is published from a syndicated feed.)