Govt prepares 4-year blueprint for fund infusion in PSBs

The government has prepared a four-year blueprint for fund infusion in public sector banks. According to the blueprint, the infusion will vary from Rs 44,000 crore to Rs 58,000 crore over the stipulated time span, reports Sapna Das of CNBC-TV18.

The fund infusion in public banks is likely to depend on the extent of equity dilution by government. To maintain a 62 percent stake, the government needs to infuse Rs 58,000 crore over 4 years. Similarly, to retain 58 percent in PSBs, it needs to infuse Rs 52,000 crore, whereas to have 51 percent, it requires to infuse Rs 44,000 crore over the four years.

The government is likely to seek Cabinet nod for stake sale in PSBs on a case-by-case basis. It does not want its stake in PSBs to fall below 51 percent or be higher than 62 percent.