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Government To Infuse About Rs. 5000 Cr In PSU Banks This Quarter

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Government will infuse about Rs 5,000 crore capitals in the Public Sector Banks (PSB) in the current fiscal to strengthen balance sheet.

Government To Infuse About Rs. 5000 Cr In PSU Banks This Quarter

Key Highlights

  • The Funds will be infused after the approval of third Supplementary Demand for Grants in the upcoming Budget session from Parliament.
  • PSU banks will now get Rs 25,000 crore in this fiscal year and similar will be given in the next fiscal year.
  • The govt will provide about Rs 5,000 crore for fund infusion in the fourth quarter.
  • RBI had pushing banks to clean up balance sheets and make adequate provision for bad loans.
  • It is estimated that state-run banks will require Rs 1.8 lakh crore of bonus capital in the next four financial years, out of which Rs 1.1 lakh crore will be lift up from the market by the lenders.
  • Public Sector Banks (PSB) like Bank of India, IDBI, Indian Overseas Bank, Bank of Maharashtra, UCO Bank and United Bank of India are requiring giving special focus to arrest the growth in bad loans.
  • The Government had announced a refurbish plan ‘Indradhanush’ to infuse Rs70,000 crore in state-owned banks over four years
  • Govt have to raise Rs 1.1 lakh crore from the markets to meet their capital requirements in line with global risk norms Basel III.
  • These steps are being taken to strengthen Internet connectivity in various parts so that direct benefit transfer is made seamless.


  • Financial Minister- Arun Jaitley
  • Financial Services Secretary –Ajuly Chib Duggal