Modi Government allocates Rs 22915 Crore capital in 13 Public Sector Banks

Government has allocated Rs. 22, 915 crore to 13 public sector banks for capital infusion in fiscal year 2016-17. Union Budget 2016-17 had allocated Rs. 25,000 crore for bank recapitalization this fiscal.


country’s largest public sector bank State Bank Of India has been allocated maximum amount of capital for re-capitalization of Rs 7,575 crore followed by IOB and PNB of Rs. 3101 Crore and Rs. 2816 Crore respectively. The least is for Allahabad Bank at Rs 44 crore.

According to a Ministry of Finance release, the capital infusion is based on “needs as assessed from the CAGR of credit growth for the last five years, banks’ own projections of credit growth and an objective assessment of the potential for growth of each PSB.”

Government has also confirmed that 75% of the amount collected for each bank is being released now to provide liquidity support for lending operations as also to enable banks to raise funds from the market.

Remaining amount will be released later which is linked to performance, with particular reference to greater efficiency, growth of both credit and deposits and reduction in the cost of operations.

Allocation break-up of Rs.22, 915 crore as released by Ministry of Finance.

S. No. Name of Bank Amount (in crore)
1 Allahabad Bank 44
2 Bank of India 1784
3 Canara Bank 997
4 Central Bank of India 1729
5 Corporation Bank 677
6 Dena Bank 594
7 Indian Overseas Bank 3101
8 Punjab National Bank 2816
9 State Bank of India 7575
10 Syndicate bank 1034
11 UCO Bank 1033
12 Union Bank of India 721
13 United Bank of India 810
  Total 22915

Add a Comment

Your email address will not be published. Required fields are marked *