Govt to infuse Rs 5,000 cr in state-run banks in Q4
| Wednesday, February 3, 2016 - 17:28
New Delhi: The government will infuse around Rs.5,000 crore into state-run banks in the fourth quarter ending March 2016 to strengthen their balance sheets, a senior official said on Wednesday.
"As committed, banks will get infusion of funds in the fourth quarter of this fiscal. Banks will get about Rs.5,000 crore," Financial Services secretary Anjuly Chib Duggal told reporters on the sidelines of an event here.
Under the Indradhanush recapitalisation plan announced by the government last year, it will pump in Rs.70,000 crore in state-owned banks over four years, while they will have to raise an additional Rs.1.1 lakh crore from the markets to meet their capital requirements under the Basel III risk norms put in place after the US financial meltdown in 2008-09.
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As per the Indradhanush plan, public sector banks will get Rs.25,000 crore in this fiscal and also in the next financial year. A further Rs.10,000 crore each would be infused in 2017-18 and 2018-19.
Duggal said banks were addressing last-mile connectivity issues vis-a-vis widening the scope of financial inclusion, social security and direct benefit transfer, while her department is in regular discussion with them to sort out various problems quickly.