Bank Recapitalization Package Highlights : PSBs to get Rs 88,139 Crore

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Finance minister Arun Jaitley today announced the details of the recapitalization Package for Public Sector Banks (PSBs) which was announced in October. This recapitalisation package aimed at strengthening the Public Sector Banks' lending capacity and thereby pulling the country out of a three-year low growth slump. The government is going to infuse Rs 88,139  in 20 public sector banks (PSBs) during the current fiscal. IDBI Bank is going to get the maximum amount (Rs 10,610 crore).

A total of Rs 35,828 crore will be infused into nine banks that haven't triggered Prompt Corrective Action (PCA), including State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB), among others, while Rs 52,311 crore will be pumped into 11 banks that have triggered PCA, including IDBI, Central Bank of India, and UCO Bank.

During the current fiscal, ending March 31, State Bank of India will get Rs. 8,800 crore capital and Bank of India, Rs. 9,232 crore. UCO Bank will get Rs. 6,507 crore; Punjab National Bank - Rs. 5,473 crore; Bank of Baroda - Rs. 5,375 crore; Central Bank of India - Rs. 5,158 crore; Canara Bank - Rs. 4,865 crore; Indian Overseas Bank - Rs. 4,694 crore and Union Bank of India - Rs. 4,524 crore. Oriental Bank of Commerce would get Rs. 3,571 crore, Dena Bank Rs. 3,045 crore, Bank of Maharashtra Rs. 3,173 crore, United Bank of India Rs. 2,634 crore, Corporation Bank Rs. 2,187 crore, Syndicate Bank Rs. 2,839 crore, Andhra Bank Rs. 1,890 crore, Allahabad Bank Rs. 1,500 crore, Punjab and Sind Bank Rs. 785 crore.

The fresh capital will bring with it a stringent reforms package based on six themes -- customer responsiveness, responsible banking, credit off take, PSBs as Udyami Mitra, deepening financial inclusion and digitalisation and developing personnel for brand PSB -- as well as incorporating 30 action points.

Below is the detailed list of Bankwise Capital Allocation

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