New Delhi, July 19 (IANS): The Ministry of Finance on Tuesday announced the much-awaited capital infusion of Rs 22,915 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.
"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 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 per cent 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.
Among others, Indian Overseas Bank will get Rs 3,101 crore, Punjab National Bank will get Rs 2,816 crorer, Bank of India will get Rs 1,784 crore, Central Bank of India will get Rs 1,729 crore and Syndicate Bank will get Rs 1,034 crore.