The Finance Minister Pranab Mukherjee may announce recapitalisation of public sector banks in order to help them meet the credit demand of productive sectors, especially those hit hard by the global economic downturn, in the Union Budget scheduled today. Last month, he had given an indication to this effect. "As the main shareholder of the public sector banks, the government has already announced that it wants to recapitalise public sector banks to enable them to achieve the CRAR (Capital to risk-weighted Assets Ratio) of 12 per cent," the minister had said.
Moreover, he also had said that the government will ensure that the credit growth of public sector banks does not suffer for requirement of capital.
The banks that likely to benefit include Bank of Maharashtra and Dena Bank. The capital infusion will help these banks to raise the capital adequacy to more than 12 per cent.
The government has announced capital infusion to the extent of about Rs 2,150 crore. Out of this, UCO Bank will get Rs 750 crore while Central Bank of India and Vijaya Bank will receive Rs 700 crore each.
Besides, the Cabinet has also given a green signal to the proposal for capital restructuring of United Bank of India.
Last fiscal, the government infused Rs 1,650 crore in three banks- Central Bank of India as well as UCO Bank and Vijaya Bank. UCO Bank received Rs 450 crore while Central Bank of India Rs 700 crore and Vijaya Bank Rs 500 crore.
However, the government will seek additional fund of $3 billion (about Rs 14,440 crore) from the World Bank for the recapitalisation of public sector banks.
Moreover, he also had said that the government will ensure that the credit growth of public sector banks does not suffer for requirement of capital.
The banks that likely to benefit include Bank of Maharashtra and Dena Bank. The capital infusion will help these banks to raise the capital adequacy to more than 12 per cent.
The government has announced capital infusion to the extent of about Rs 2,150 crore. Out of this, UCO Bank will get Rs 750 crore while Central Bank of India and Vijaya Bank will receive Rs 700 crore each.
Besides, the Cabinet has also given a green signal to the proposal for capital restructuring of United Bank of India.
Last fiscal, the government infused Rs 1,650 crore in three banks- Central Bank of India as well as UCO Bank and Vijaya Bank. UCO Bank received Rs 450 crore while Central Bank of India Rs 700 crore and Vijaya Bank Rs 500 crore.
However, the government will seek additional fund of $3 billion (about Rs 14,440 crore) from the World Bank for the recapitalisation of public sector banks.
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