The Finance Ministry on Wednesday tightened the noose on public sector banks (PSBs), saying that the massive Rs 2.11 lakh crore bank recapitalisation announced by the government will alongside reforms by the banks to ensure that the banking crisis does not get repeated. In October last year, the Union Cabinet approved an unprecedented Rs 2.11 lakh crore for recapitalisation of banks over the next two years in a bid to clean banks’ books and revive investment in a slowing economy.
Finance Secretary Rajiv Kumar laid down 6-point reforms for the PSBs and said their performance will be under the annual assessment. Of the 21 PSBs, IDBI will be getting the highest capital of Rs 10,610 crore from the government.
Here’s the full list of the PSBs and how much they will get:
- IDBI Bank: Rs 10,610 crore
- Bank of India: Rs 9,232 crore
- SBI: Rs 8,800 crore
- UCO Bank: Rs 6,507 crore
- Central Bank: Rs 5,158
- Canara Bank: Rs 4,865 crore
- Union Bank: Rs 4,524 crore
- Syndicate Bank: Rs 2,839 crore
- Andhra Bank: Rs 1,890 crore
- Punjab & Sind Bank: Rs 785 crore
- IOB Bank: Rs 4,694 crore
- OBC Bank: Rs 3,571 crore
- Dena Bank: Rs 3,045 crore
- Bank of Maharashtra: Rs 3,173 crore
- United Bank: Rs 2,634 crore
- Corporation Bank: Rs 2,187 crore
21 public sector banks account for more than two-thirds of banking assets. These banks also account for a record 9.5 lakh crore of bad loans or non-performing assets. The government earlier this month sought parliamentary nod for additional Rs 80,000 crore bonds for the PSBs which are sitting on a pile of Rs 9.5 lakh crore bad loans and approved a proposal for infusion of Rs 7,577 crore in 6 weak PSBs. According to CNBC-TV18, Arun Jaitley may choose the Budget presentation day, February 1, to announce bank merger proposals.