New Delhi: The Finance Ministry will decide in the fourth quarter of the current financial year to infuse capital of the remaining Rs 14,500 crore in public sector banks (PSBs). Sources gave this information. Sources said that after reviewing the performance of the first half, it has been revealed that out of 12 state-owned banks, Punjab and Sindh Bank needs capital of Rs 5,500 crore to meet the regulatory requirements. In such a situation, the government has approved the infusion of capital in Punjab & Sind Bank by preferential allocation of equity shares last month.
Parliament in September approved a capital of Rs 20,000 crore for public sector banks as part of the first batch of supplementary demands for grants for FY 2020-21. Of this, an amount of Rs 14,500 crore is left after putting Rs 5,500 crore in Punjab and Sindh Bank. Sources said that a review of the performance after the third quarter data would give banks a clear idea of how much extra burden they have incurred due to the one-time restructuring of loans as per RBI guidelines amid the Kovid-19 epidemic.
