The government on Tuesday allocated Rs 22,915 crore to recapitalise 13 public sector banks (PSBs), including the biggest lender State Bank of India (SBI). The sum, which is 92 per cent of the budgeted provision of Rs 25,000 crore, is aimed at supporting lending operations of these banks and helping them mop up money from markets.
The highest sum of Rs 7,575 crore will be released for SBI, followed by Rs 3,101 crore for Indian Overseas Bank and Rs 2,816 crore for Punjab National Bank, a government statement said on Tuesday. However, going forward the government may look at additional capital infusion, over and above the Rs 25,000-crore budgetary allocation for FY17. “This is not the end of capital infusion by the government for the financial year. During the course of the year, additional capital requirement by state-run banks will be looked into,” said a senior government official.