The central government has committed to infuse Rs 14,000 crore ($2.28 billion) across 20 public sector (PSU) banks during the current financial year. This marks an increase of 11.8 per cent over Rs 12,517 crore that was injected into 13 PSU banks last year, as per an official statement issued on Wednesday.
The investment would be through a preferential allotment of shares to help the state-controlled banks meet the credit requirement of the economy as well as maintain regulatory capital adequacy ratios.
The country's largest lender State Bank of India (SBI) will get the highest amount of Rs 2,000 crore followed by Central Bank of India and IDBI Bank Ltd, which will get Rs 1,800 crore each. Indian Overseas Bank will get Rs 1,200 crore and Bank of India will get Rs 1,000 crore.
Other banks will receive the following amount: Bank of Maharashtra (Rs 800 crore); Dena Bank and United Bank of India (Rs 700 crore each); Bank of Baroda (Rs 550 crore); Canara Bank, Punjab National Bank and Union Bank of India (Rs 500 crore each); Corporation Bank (Rs 450 crore); Allahabad Bank (Rs 400 crore); Vijaya Bank (Rs 250 crore); Syndicate Bank, UCO and Andhra Bank (Rs 200 crore each), Oriental Bank of Commerce (Rs 150 crore) and Punjab and Sind Bank (100 crore).
(Edited by Joby Puthuparampil Johnson)