Government to infuse Rs 48,239 crore in 12 public sector banks, says Finance Ministry

The Central government on Wednesday approved recapitalisation of 12 public sector banks with an infusion of Rs 48,239 crore.

Rajeev Kumar, Secretary, Department of Financial Services (DFS) in Finance Ministry of Finance, said in a tweet that recapitalisation totalling Rs 1 lakh crore in fiscal 2018-19 will equip two better-performing public sector banks (PSBs) to be above the regulatory Prompt Corrective Action (PCA) triggers, ensure PSBs brought out remain above PCA triggers, avoid PCA for PSBs in breach, and minimum regulatory capital for all PSBs in PCA.

"Banks need to be more responsible, adopt high underwriting and risk management, standards to avoid recurrence," said Kumar.

Corporation Bank gets the highest infusion of Rs 9,086 crore while Bank of Maharashtra gets the lowest at Rs 205 crore.

Allahabad Bank will get 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 3,806 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 and Syndicate Bank Rs 1,603 crore.

-ANI