Govt allocates Rs.22,915 crore capital to 13 public sector banks for FY17

The government has allotted Rs.721 crore to Union Bank of India under PSU Bank recapitalisation.

In line with the announcements made under Indradhanush and the Union Budget, Government has undertaken an exercise to assess the capitalization needs of Public Sector Banks during the year 2016-17.

The capital infusion exercise for the current year is based on an assessment of need as assessed from the CAGR of credit growth for the last five years, banks’ own projections of credit growth and an objective assessment of the potential for growth of each Public Sector Bank.

The government has allotted Rs.721 crore to Union Bank of India under PSU Bank recapitalisation. Punjab National Bank will receive Rs.2,816 crore whereas Syndicate Bank will be allotted Rs.1,034 crore.

Bank of India will get Rs.1,784 crore, whereas State Bank of India will receive Rs.7,575 crore under PSU Bank recapitalisation.

Consequent upon the above exercise, 75% of the amount collected for each bank is being released now to provide liquidity support for lending operations as also to enable banks to raise funds from the market.  The remaining amount, to be released later is linked to performance, with particular reference to greater efficiency, growth of both credit and deposits and reduction in the cost of operations. Total Rs.22, 915 crore is being allocated to following banks at present.

S. No.	Name of Bank	Amount (in crore)
1	Allahabad Bank	44
2	Bank of India	1784
3	Canara Bank	997
4	Central Bank of India	1729
5	Corporation Bank	677
6	Dena Bank	594
7	Indian Overseas Bank	3101
8	Punjab National Bank	2816
9	State Bank of India	7575
10	Syndicate bank	1034
11	UCO Bank	1033
12	Union Bank of India	721
13	United Bank of India	810
	Total	22,915