Seeking to pump in more capital into state-owned banks, the Finance Ministry held a meeting with heads of three public sector lenders, including United Bank of India to assess their capital requirement on Friday.
The capital assessment meeting was attended by Minister of State for Finance, Jayant Sinha, and Financial Services Secretary Hasmukh Adhia from the Finance Ministry side. In order to assess capital requirement of Public Sector Banks (PSBs), all PSBs have been requested to make presentations, a Finance Ministry statement said.
In the first batch, UCO Bank, United Bank of India and Allahabad Bank made presentations today. Earlier in the day, the issue of additional capital infusion, over and above Budgetary allocation of Rs7,940 crore made for the current fiscal, was discussed by the PSU banks with Finance Minister Arun Jaitley.
The capital infusion requirement would be discussed with Punjab National Bank, Punjab & Sindh Bank and Oriental Bank of Commerce on June 18 here.
It would be followed by the meeting in Mumbai on June 24, 25 where State Bank of India, Union Bank of India, IDBI Bank, Central Bank of India, Bank of India, Bank of Baroda, Dena Bank and Bank of Maharashtra would make their presentations.
Presentation by Andhra Bank, Indian Overseas Bank, Corporation Bank, Canara Bank, Syndicate Bank and Vijaya Bank would be made on July 3 in Bengaluru.
During the quarterly review of Public Sector Banks' performance held on March 11, it was discussed that the banks should work-out/find-out their own resources for raising capital and also work-out their own plan for raising capital from market, it said. “Bank should have a base line board validated capital raising strategy. Capital would include the equity, non-equity and other instruments,” it said.