'Govt to infuse additional Rs 11,500 cr in PSU banks in FY16'

The government might infuse additional $1.8 billion (about Rs 11,500 crore) in public sector banks this financial year over and above $1.2 billion earmarked in the Budget, Finance Secretary Rajiv Mehrishi said on Friday. "Will put additional $1.8 billion in PSU banks apart from $1.2 billion budgeted this year," he told reporters here.

The government has earmarked Rs 7,940 crore in the Budget for recapitalisation of PSU banks this year. Earlier this month, Mehrishi said the government intends to provide $9 billion (about Rs 57,000 crore) to public sector banks towards recapitalisation over the next two financial years to meet global capital adequacy norms and for growth.