Question : Capital Infusion Strategy for the PSBs

(a) whether the Government is working on capital infusion strategy for the Public Sector Banks (PSBs), if so, the details thereof along with the details of capital infused to PSBs during the last three years and the current year, bank-wise;

(b) whether the PSBs have demanded more capital infusion in view of the action taken by the Government thereon;

(c) whether the infusion of such capital is sufficient enough to aid the PSBs, if so, the details of the losses recovered by each bank thereof, bank-wise; and

(d) the other steps taken by the Government to boost credit disbursement?

The Minister of State in the Ministry of Finance


(a) and (b): Keeping in view requirements of PSBs, Government has recently announced decision to recapitalise Public Sector Banks (PSBs) to the tune of Rs. 2,11,000 crore, through recapitalisation bonds of Rs. 1,35,000 crore and budgetary provision of Rs. 18,139 crore (Under Indradhanush plan) over two financial years, and the balance through capital raising by banks from the market. Details of capital infusion in PSBs since financial year 2014-15 are annexed.

(c) and (d): Under the Indradhanush Plan, Government is committed to making budgetary provisions till March 2019 to ensure that PSBs remain adequately capitalised to support economic growth. Through infusion of capital, Government acquires equity in PSBs and helps maintain their capital adequacy. Such infusion is not for loss recovery.

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