Govt to infuse Rs 18,000 cr in 12 PSU banks

The finance ministry will be infusing Rs 18,000 crore in the current financial in 12 banks, including the State Bank of India (SBI), and will be seeking supplementary grants from Parliament in the Budget session.

"There are 12 banks in which we will infuse money in 2011-12. The amount will be Rs 18,000 crore. This includes Rs 7,900 crore for State Bank of India (SBI)," sources said.

Besides SBI, other lenders that would be given capital support in the fiscal include Punjab National Bank, Central Bank of India and Bank of Baroda.

The government would seek supplementary demands for grants to the tune of Rs 14,000 crore for recapitalising PSU lenders in the Budget session, which is likely to begin sometime next month.

Earlier this week, the government had approved capital infusion of Rs 7,900 crore in State Bank of India (SBI) and Rs 1,285 crore in PNB through preferential issue of shares.

The capital infusion in banks would help the lenders increase their business.

Most of the public sector banks got capital support from the government last fiscal. These include Punjab National Bank, Bank of Baroda, Union Bank of India, Oriental Bank of Commerce, UCO Bank and Dena Bank.