PSU banks to get up to Rs 17,000 cr capital

Public sector banks, barring the big lenders State Bank of India (SBI), Punjab National Bank (PNB) and a few others, would get capital of Rs 16,000-17,000 crore during 2009-10, for which the government has approached the World Bank.

"As many as 18 state-owned banks in financial year 2009-10 (will be recapitalised)," an official source said here.

The government has approached the World Bank for capital infusion.

Although the capital adequacy ratio of all the public sector banks and the six SBI associates is above the prescribed level of 9 per cent, the government has decided to go for fund infusion as they need capital to expand their business.

CAR is the weighted percentage of a bank's assets against its exposures.

So far, the government has either provided funds or restructured the capital of SBI, Punjab & Sind Bank, Vijaya Bank, Central Bank of India, Uco Bank and United Bank.