To augment capital base of its public sector undertaking banks, the Union Finance Ministry on October 22 finalised a Rs 14,000-crore infusion plan, the Union government announced on October 22. The Union Finance Minister P Chidambaram said this after meeting the heads of PSU banks in Delhi.
He also promised another tranche to he PSU banks in the fourth quarter of the current fiscal. He further said capital infusion would be worked in accordance to the provisions of the Banking Regulations Act in a week or so.
The Minister added that the capital infusion will ensure that banks have 8 per cent Tier-1 capital by the end of the current fiscal year.
The government had infused about Rs 20,117 crore in public sector banks during 2010-11, and Rs 12,000 crore in 2011-12.