Government of India has decided to infuse about Rs 20,000 crore in public sector banks by September 2015. Of the total infusion, Rs 10,000 crore capital would be provided to weak PSU banks. Government is also hopeful that Non-performing assets of PSU banks will improve in next two quarters.
Meanwhile, the Finance Ministry has sought Parliament’s nod to spend an additional Rs 25,500 crore in the current fiscal, nearly half of which will be spent on capital infusion into state-owned banks to help them overcome the high bad loans situation. For the current fiscal, the government has allocated Rs 7,940 crore in the Budget for capital infusion in state-owned banks.
Public sector banks are saddled with the gross NPAs of Rs 2.67 lakh crore at the end of March 2015. The gross NPA of the all banks was Rs 3.09 lakh crore.
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