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8 PSU banks backed with Government infusion of Rs 13,955 crore

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In the month of July government proposed a recapitialisation plan which aims to induct 70,000 crore in PSU banks to boost their capital base and help to meet credit demand and international standards.

Government infuses Rs 13,955 crore capital into  PSU banks

 

Now eight public sector banks have allotted equity shares on preferential basis to the government in lieu of capital infusion of Rs 13,955 crore.

BANK

SHARES ALLOTED TO GOVT

CONSIDERATION FROM GOVT (in crores)

State Bank of India (SBI) 19,65,59,390 Rs5,392.99
Bank of India (BOI) 12,70,04,655 Rs2,455
Punjab National Bank (PNB) 10,90,40,543 Rs 1,732
Canara Bank 2,77,94,083 Rs947
Corporation Bank 15,66,00,000 Rs857
Dena Bank Rs 407
Andhra Bank Rs 378
Bank of Baroda (BOB) 9,26,63,692 Rs1,785.99
  • Out of total layout of Rs70, 000 crores Rs 25,000 crore each is set against 2015-16 and 2016-17 and Rs 10,000 crore each in 2017-18 and 2018-19.
  • As per Government estimation there will be a capital requirement of Rs 1.80 lakh crore for PSU banks over four years and to keep this at par banks will have to raise Rs 1.10 lakh crore from the market.
  • Apart from these 8 banks there 5 more PSU banks which are in requirement of capital infusion this fiscal include IDBI (Rs 2,229 crore), Indian Overseas Bank (Rs 2,009 crore), Union Bank of India (Rs 1,080 crore), Bank of Maharashtra (Rs 394 crore) and Allahabad Bank (Rs 283 crore) which are expected to infused during last quarter of 2015-16.