The Cabinet Committee on Economic Affairs (CCEA) today cleared the proposal to infuse Rs 12,200 crore in public sector banks. Aakanksha Sethi of CNBC-TV18 gives the details of the recapitalisation.
About 13 banks are going to get capital infusion within this fiscal and these include; Central Bank, Corporation Bank, IDBI, Indian Overseas Bank (IOB), Punjab National Bank (PNB), UCO Bank, United Bank as well as Union Bank of India amongst others.
The lion share will be for SBI which will get Rs 3004 crore. PNB will get about Rs 1248 crore, Central Bank will get Rs 2406 crore and Union Bank will get Rs 1114 crore amongst others.
The Cabinet has given its nod for exemption for equity infusion in banks for tier I capital to be maintained in line with Basel III norms which will be at seven percent. So, till 2018 the Finance Ministry expects about Rs 140,000 crore to be injected into public sector banks for the tier I capital to be in line with Basel III norms. For this, they will not have to repeatedly go to the cabinet for approval and will be able to do this on their own. So, this will help the process quicken and be smoother.
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