Finance Ministry likely to infuse Rs 28,615 crore in PSBs today: Sources

The seven PSBs include United Bank of India, Central Bank of India, Bank of India, UCO Bank, Oriental Bank of Commerce (OBC), Bank of Maharashtra and Syndicate Bank.

Finance Ministry likely to infuse Rs 28,615 crore in PSBs today: Sources
The government has already infused Rs 23,000 crore into the PSBs from the total amount for bank recapitalisation of Rs 1.06 lakh crore for FY2018-19. Reuters
Written By: ZeeBiz WebTeam
Updated: Thu, Dec 27, 2018
10:04 am
ZeeBiz WebDesk
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Union Finance Ministry is likely to go for a capital infusion for the Public Sector Banks (PSBs) today, on December 27, 2018, sources said. In this round of capital infusion, the ministry will disburse Rs 28,615 crore of recapitalisation funds for 7 PSBs.

The seven PSBs include United Bank of India, Central Bank of India, Bank of India, UCO Bank, Oriental Bank of Commerce (OBC), Bank of Maharashtra and Syndicate Bank.

Bank of India will receive the highest amount of Rs 10,086 crore, while United Bank of India is likely to get Rs 2159 crores. Central Bank of India will be recapitalised with Rs 1678 and Rs 3056 crore will be infused in UCO Bank.

OBC will get capital support of Rs 5500 crore, Bank of Maharashtra will get Rs 4498 crore and Syndicate bank will be recapitalised with Rs 1638 crore.

The government has already infused Rs 23,000 crore into the PSBs from the total amount for bank recapitalisation of Rs 1.06 lakh crore for FY2018-19. The remaining Rs 83,000 crore will be provided in the remaining three months of the financial year.

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Earlier, the centre on December 20, 2018, sought parliament’s nod for enhancing funds earmarked for the recapitalisation of the PSBs to Rs 1.06 lakh crore from the previous target of Rs 65,000 crore in the current financial year. The finance minister Arun Jaitley has said, the recapitalisation will enhance the lending capacity of the PSBs and help them to come out from the RBI’s Prompt Corrective Action (PCA) framework.