October 19, 2011 / 22:14 IST
Assuring that all public sector banks will be fully capitalised, Finance Minister Pranab Mukherjee today said the government will seek the Parliament approval for additional funds, if required.
"Adequate resources will be provided for the recapitalisation of the public sector banks... If additional sum is required, I will go for the second supplementary (in the Winter Session)," Mukherjee said in the question-answer session at the Economic Editors conference here.
He said the government was committed to ensuring 8% tier I or equity capital in all the PSU banks.
"I assure that adequate capital will be injected into SBI, which has been downgraded, and the target is to have 8% of tier I capital of all the PSU banks," he added.
Financial Services Secretary D K Mittal said the capital requirement of PSU banks, including SBI, for the fiscal is estimated at between Rs 10,000-20,000 crore, depending upon different conditions.
The government has already made a provision to infuse Rs 6,000 crore in public sector banks in the current fiscal. The money, however, is yet to be disbursed.
Mittal said that five to six PSU banks, including SBI, Bank of India, Bank of Baroda, Syndicate Bank and Indian Bank would need capital infusion during the current fiscal.
Mittal also said that there would be no rights issue of State Bank of India (SBI) this fiscal due to the prevailing market conditions. SBI is awaiting government nod for a Rs 20,000 crore rights issue to strengthen its capital.
The government during 2010-11 had provided the capital support to the tune of Rs 20,157 crore to public sector banks.
The lenders which got funds from the government last fiscal include Punjab National Bank and Bank of Baroda.
Besides, the investigation wing of CBDT has detected concealed income of Rs 18,750 crore in last two fiscals. Also, over 30,700 pieces of domestic information about suspicious transactions are under investigation by respective agencies.
"During the first five months of the current financial year, concealed income of Rs 3,014 crore has been detected due to focused searches on the basis of information received from foreign jurisdictions," Mukherjee said.
The Directorate of Transfer Pricing, he said, has detected mis-pricing of Rs 34,145 crore in last two financial years thus preventing the outflow of this amount abroad.
In its fight against black money, the country has created a "huge network" of amended DTAA (81) and Tax Information Exchange Agreement (TIEA) with tax havens (4).
Mukherjee said India is constructively engaged with Mauritius to update the existing tax treaty in line with the international practices.
OECD and Task Force on Financial Integrity and Economic Development have acknowledged the "outstanding work" done by India in its crusade against black money.
The Finance Minister further said the Directorate of International Taxation has collected taxes of Rs 33,784 crore from cross broader transactions in the last two financial years.
