The Government on Friday said it will infuse about Rs 55,000 crore in public sector banks to enhance their capital base so that they can accelerate lending in a bid to bolster growth.
This was the second set of measures announced by Finance Minister Nirmala Sitharaman to prop up the economy and at least one more is expected next week.
The announcement formed part of the Government’s mega plan to merge 10 public sector banks into four with a view to creating fewer and stronger global-sized lenders with robust balance sheets.
All the anchor banks in the consolidation process will get capital support. As a result, Punjab National Bank will get Rs 16,000 crore, Union Bank of India Rs 11,700 crore, Canara Bank Rs 6,500 crore and Indian Bank Rs 2,500 crore.
Besides, Bank of Baroda will get Rs 7,000 crore, Indian Overseas Bank Rs 3,800 crore and Central Bank of India Rs 3,300 crore.
This are indicative figures and the actual capital infusion may vary depending on banks’ assessment, Sitharaman told reporters here.