Question : Bank Recapitalisation

(a) the amount of money spent for Bank recapitalisation of Public Sector Banks under the Mission Indradhanush during the current fiscal year, bank-wise;

(b) the amount of money raised by the Government for Bank recapitalisation of Public Sector Banks through issuance of Bank recapitalisation Bonds during the current fiscal year;

(c) whether the Government is mulling over raising Foreign Institutional Investment in Public Sector Banks from 20% to 49% for capital mobilization; and

(d) if so, the details thereof?

THE MINISTER OF STATE FOR FINANCE


(a) and (b): Indradhanush plan announced in August 2015 envisaged, inter alia, infusion of capital in Public Sector Banks (PSBs) by the Government for the period up to the financial year 2018-19. With the envisaged period being over, infusion under Indradhanush plan has been completed.

In the current financial year, Government has infused Rs. 69,169 crore in PSBs and IDBI Bank Limited as per bank-wise details given at Annex, and has raised like amount through issuance of special securities (recapitalisation bonds).

(c) and (d): No proposal is currently under consideration of the Government for raising foreign institutional investment in PSBs from 20% to 49% for capital mobilisation.
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Annex
Lok Sabha Unstarred Question No. 1272 for answer on 10.2.2020, regarding “Bank Recapitalisation”
Capital infused by Government in banks in the financial year 2019-20
In crore Rupees
Bank Amount
Allahabad Bank 2,153
Andhra Bank 200
Bank of Baroda 7,000
Canara Bank 6,571
Central Bank of India 3,353
Indian Bank 2,534
Indian Overseas Bank 8,217
Punjab National Bank 16,091
Punjab and Sind Bank 787
UCO Bank 4,272
Union Bank of India 11,768
United Bank of India 1,666
IDBI Bank Limited 4,557
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