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19Th July 2016
 |
SBI (The Total Investment & Insurance
Solutions)
|
The Ministry of Finance on Tuesday announced
the much-awaited capital infusion of Rs22,915 crore towards the
recapitalisation of 13 public sector banks during 2016-17, with the largest
amount earmarked for the country's largest lender, the State Bank of India. The Total Investment & Insurance
Solutions
"In line with the announcements made
under 'Indradhanush' and the Union budget, the government has undertaken an
exercise to assess the capitalisation needs of public sector banks during the
year 2016-17," a finance ministry statement said. The Total Investment & Insurance Solutions
"The capital infusion exercise for the
current year is based on an assessment of need as assessed from the compounded
annual growth rate 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."
Following this, 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 Total Investment & Insurance
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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.
Among others, Indian Overseas Bank will get
Rs3,101 crore, Punjab National Bank will get Rs2,816 crorer, Bank of India will
get Rs1,784 crore, Central Bank of India will get Rs1,729 crore and Syndicate
Bank will get Rs1,034 crore. The Total
Investment & Insurance Solutions
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