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Govt puts in Rs 13,995 cr in 8 PSU banks

The government has infused Rs 13,995 crore into 8 public sector banks and these banks have allooted equity shares on a preferential basis, according to filings to the stock exchanges. These banks are State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank, Dena Bank, Corporation Bank and Andhra Bank. This is part of the proposed Rs 70,000 crore capital infusion into these banks over a period of four years to enable these banks to have capital base in conformity with Basel norms. Of this, Rs 25,000 crore each is marked for 2015-16 and 2016-17 and Rs.10,000 crore each in 2017-18 and 2018-19. In August, the government said it would infuse Rs.20,088 crore in 13 public sector banks in about a month’s period. The rest of the amount is expected to be infused in the last quarter of 2015-16. Other PSU banks to get capital infusion this fiscal include IDBI Bank, Indian Overseas Bank, Union Bank of India, , Bank of Maharashtra and Allahabad Bank. The government has estimated a capital requirement of Rs 1.80 lakh crore for PSU banks over four years. Of this, banks will have to raise Rs1.10 lakh crore from the market.

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