The government will soon infuse Rs 11,336 crore into five public-sector banks (PSBs), including fraud-hit Punjab National Bank (PNB), in the form of recapitalisation bonds to help them meet regulatory capital requirement, an official source told FE. PNB, which was hit by an over $2-billion fraud caused by jewellers Nirav Modi and Mehul Choksi, will be provided Rs 2,816 crore, followed by Corporation Bank (Rs 2,555 crore), Indian Overseas Bank (Rs 2,157 crore), Andhra Bank (Rs 2,019 crore) and Allahabad Bank (Rs 1,790 crore), said the source. Some of these banks had sought capital urgently, as they are facing pressure due to interest payment to holders of their Additional Tier 1 (AT-1) bonds. Consequently, they were facing the risk of breaching the regulatory capital requirement. Three of these banks \u2014 Corporation Bank, IoB and Allahabad Bank \u2014 are already under the central bank\u2019s prompt corrective action framework (PCA). Allahabad Bank is even facing curbs on lending. PNB\u2019s financial performance is already under watch by both the government and the regulator and its June quarter results will be a key factor for the central bank to decide whether it deserves to be under the PCA or not. Banks raise capital through AT-1 bonds that are perpetual in nature, and therefore, provide higher interest rates to investors. Saddled with stressed assets, these banks are finding it difficult to service these bonds from their own earnings. The infusion is part of Rs 65,000 crore allocated for this fiscal, out of Rs 2.11 lakh crore capital infusion over two financial years, announced in October 2017. As per the initial plan, the PSBs were to get Rs 1.35 lakh crore through re-capitalisation bonds and Rs 58,000 crore by way of raising of capital from the market and budgetary provisions. However, in the Budget for 2018-19, the government decided to scrap the budgetary provision of Rs 10,000 crore, and instead, decided to offer Rs 10,000 crore more through recap bonds, taking the total issuance of such securities to Rs 1.45 lakh crore in two years through FY19. PSBs were offered Rs 90,000 crore (of which Rs 80,000 crore was in the form of recap bonds) in 2017-18. Of the Rs 80,000-crore bonds last fiscal, 11 stressed banks that are under the PCA received as much as Rs 52,311 crore.