Govt set to release Rs 286.15-bn bank recapitalisation funds before Dec-end

The government is to infuse Rs 830 billion into public-sector banks in the remaining months of 2018-19

The central government would release Rs 286.15 billion before the end of this month towards a fresh tranche of funds to recapitalise state-run banks, according to a source in the finance ministry.

Of this, United Bank of India is likely to get Rs 21.59 billion, Central Bank of India Rs 16.78 billion, Bank of India Rs 100.86 billion, Uco Bank Rs 30.56 billion, Oriental Bank of Commerce Rs 55 billion, Bank of Maharashtra Rs 44.98 billion, and Syndicate Bank Rs 16.38 billion.

It was reported earlier that the government would infuse Rs 830 billion into public-sector banks in the remaining months of 2018-19, taking capital injection into lenders to Rs 1.06 trillion during the year.

It had sought Parliament’s approval for Rs 410 billion through the second batch of the supplementary demand for grants. The Budget had announced a capital infusion of Rs 650 billion.

Financial Services Secretary Rajiv Kumar had earlier said that there were three non-PCA (prompt corrective action) banks that were near the PCA limit, and four-five PCA banks that could come out of PCA.