Govt to infuse Rs 15,000 cr in PSU banks in 2010-11

New Delhi, Apr 23 (PTI) The Indian government Friday
approved Rs 15,000 crore capital infusion in public sector
banks (PSBs) in the current fiscal, a move that will increase
the lending capacity of the banks by Rs 1.85 lakh crore.
For the year 2010-11, a sum of Rs 15,000 crore is to
be infused in Tier I Capital Instruments of the PSBs, said an
official release after the meeting of the Cabinet, presided
India's Prime Minister Manmohan Singh.
The exact amount, the mode of capitalisation and other
terms would be decided in consultation with the banks at the
time of the infusion, it said.
For the year 2011-12, it said, additional capital
requirements, if any, will be worked out in consultation with
the PSBs based on their third quarter results for the year
2010-11.
The statement further said that infusion of Rs 15,000
crore in Tier I Capital Instruments of PSBs would enable them
to expand their credit growth by about Rs 1,85,000 crore, it
said.
This additional availability of credit is likely to
benefit employment oriented sectors, especially agriculture,
micro and small enterprises and entrepreneurs that in turn
would contribute substantially to the growth of the economy,
it said.
The capital infusion would enhance the lending capacity
of PSBs that are expected to continue meeting credit
requirements of the economy in order to maintain and
accelerate economic growth. MORE PTI DP
MRD


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