Govt likely to recapitalise state-run banks this month: Sources

The government is likely to announce a bank recapitalisation plan this month, sources have told CNBC-TV18.The budget allocated is about Rs 25,000 crore. The expected infusion is said to be around Rs 22,000-23,000 crore for now, while the rest may be kept aside for further capitalisation as per need.The move underlines the government's confidence and support in helping NPA-saddled public sector banks (PSBs) get back on their feet. The initiative will also help the PSBs meet Basel III norms and maintain capital adequacy ratio above minimum threshold levels. Sources said that two banks, Bank of Baroda and IDBI Bank, have told the government they do not have any need for capital infusion. Watch video for more details.