Government announces Rs 48,239 cr recapitalisation plan for 12 PSBs

The finance ministry Wednesday announced to pump in Rs 48,239 crore in 12 public sector banks in this fiscal to help them maintain regulatory capital requirements and finance growth plans.

New Delhi: Financial Services Secretary Rajiv Kumar said that the government will infuse Rs 9,086 crore in Corporation Bank and Rs 6,896 crore in Allahabad Bank -- the two "better-performing" banks currently under the Prompt Corrective Action (PCA) supervision of the RBI.

• Govt approves ₹ 48239 cr recap to 12 PSBs (₹ 1 lakh cr in FY) to equip 2 better-performing PSBs to be above reg PCA triggers, ensure PSBs brought out remain above PCA triggers, avoid PCA for PSBs in breach, & min reg capital for all PCA PSBs @PMOIndia @FinMinIndia @PIB_India pic.twitter.com/4dyY57ixHb

  — Rajeev kumar (@rajeevkumr) February 20, 2019 " class="align-text-top noRightClick twitterSection" data="

  Govt approves ₹ 48239 cr recap to 12 PSBs (₹ 1 lakh cr in FY) to equip 2 better-performing PSBs to be above reg PCA triggers, ensure PSBs brought out remain above PCA triggers, avoid PCA for PSBs in breach, & min reg capital for all PCA PSBs @PMOIndia @FinMinIndia @PIB_India pic.twitter.com/4dyY57ixHb

  — Rajeev kumar (@rajeevkumr) February 20, 2019

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  Govt approves ₹ 48239 cr recap to 12 PSBs (₹ 1 lakh cr in FY) to equip 2 better-performing PSBs to be above reg PCA triggers, ensure PSBs brought out remain above PCA triggers, avoid PCA for PSBs in breach, & min reg capital for all PCA PSBs @PMOIndia @FinMinIndia @PIB_India pic.twitter.com/4dyY57ixHb

  — Rajeev kumar (@rajeevkumr) February 20, 2019

Further, Rs 4,638 crore and Rs 205 crore will be provided to Bank of India and Bank of Maharashtra. These banks have recently come out of the regulatory supervisory framework PCA of the RBI.

Kumar further said Punjab National Bank will get Rs 5,908 crore, Union Bank of India Rs 4,112 crore, Andhra Bank Rs 3,256 crore and Syndicate Bank Rs 1,603 crore.

Bank wise recapitalization amount

The government will pump in Rs 12,535 crore in four other banks under PCA -- Central Bank of India, United Bank, UCO Bank and Indian Overseas Bank.

The government in December had infused Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds.

(Inputs from PTI)