The Finance Ministry is likely to soon clear the first round of capital infusion in public sector banks that has been slated for the current financial year.
The proposal for capital infusion is expected to get approval from Finance Minister Arun Jaitley shortly, sources said, adding that the first tranche is likely to be less than Rs 20,000 crore. After the fourth quarter results, each bank made a detailed request for fresh fund infusion taking into account issues pertaining to non-performing assets (NPAs) or bad loans and growth projections. Based on the suggestions, the Department of Financial Services finalised the first tranche of fund infusion, sources said. The government has made Budget provision of Rs 25,000 crore capital infusion in public sector banks for the current fiscal. Jaitley, however, had assured the state-owned banks that the government would provide more funds if needed.