Bank recapitalisation plan: PSU banks set to get ₹42,239-crore Fund
Corporation Bank gets the highest infusion of Rs 9,086 crore.
The government on Wednesday February 20 approved the infusion of Rs 48,239 crore in 12 public sector banks in the current financial year(2018-2019).
The government has now provided Rs 1,00,958 crore out of the Rs 1.06-lakh-crore bank recapitalisation plan.
Corporation Bank emerged as the biggest beneficiary of the latest round of capital infusion with Rs 9,086 crore,followed by Allahabad Bank (Rs 6,896 crore).
Here’s a list of banks getting an infusion in the descending order of the amount:
Corporation Bank – Rs 9,086 crore
Allahabad Bank – Rs 6,896 crore
Punjab National Bank – Rs 5,908 crore
Bank of India – Rs 4,638 crore
Union Bank – Rs 4,112 crore
Indian Overseas Bank – Rs 3,086 crore
UCO Bank – Rs 3,330 crore
Andhra Bank – Rs 3,256 crore
United Bank – Rs 2,839 crore
Central Bank of India – Rs 2,560 crore
Syndicate Bank – Rs 1,603 crore
Bank of Maharashtra – Rs 205 crore
The RBI removed Bank of India, Bank of Maharashtra and Oriental Bank of Commerce from the PCA framework on January 31.
Department of Financial Services said that the banks would receive the capital to “equip better performing PCA banks to be above regulatory capital threshold, to help banks that are out of PCA to remain so and equip non PCA banks to stay above regulatory norms of PCA”.
As per the recapitalisation drive, the government has categorised the banks in three categories with respect to their capital position as against that required by the RBI.