Government infuses Rs 13955 crore capital into 8 Public Sector Undertakings(PSU).  Banks have allotted equity shares on preferential basis to the government against capital infusion of Rs 13,955 crore. The latest capital infusion is part of government’s programme to infuse a total Rs 70,000 crore equity into public lenders over four years to 2018-19 to shore up their capital base for meeting Basel norms. Of this, Rs 25,000 crore each is marked for 2015-16 and 2016-17 and Rs 10,000 crore each in 2017-18 and 2018-19.

Bank of India, Canara Bank, Dena Bank, Corporation Bank and Andhra Bank are among the lenders that received capital infusion from the government.

What are PSU?

The government-owned corporations are termed as Public Sector Undertakings (PSUs) in India. In a PSU majority (51% or more) of the paid up share capital is held by central government or by any state government or partly by the central governments and partly by one or more state governments.