The Government plans to pump in around Rs 9,000 crore into select State-run banks by April-May, in the first phase of its capital infusion programme announced in the Union Budget, a top Finance Ministry official said.
“This (capital infusion into select PSBs) will be done by April-May in the first phase. We are looking at putting in around Rs 9,000 crore,” Financial Services Secretary R. Gopalan, told reporters here on Friday.
In the budget, the Government has earmarked Rs 16,500 crore for recapitalisation of State-run banks, to enable them maintain eight per cent Tier-I capital by March 31, 2011.
However, the Government is yet to decide which banks to infuse funds into and the amount for each bank, Mr. Gopalan said.
“That is something I cannot say. Calculations will have to go on now. We have to find out, as on March 31, what are the out-standings and CRAR. These issues have to be sorted out,” Mr. Gopalan said.
While Mr. Gopalan would not divulge the names of banks likely to receive capital, it is widely expected that Bank of Maharashtra, Indian Overseas Bank, Uco Bank, Syndicate Bank, Dena Bank, among others, will make it to the list.