Decision on banks’ capital infusion by June-end: Govt
The government will take a view on further recapitalisation of state-owned banks by June-end to help them enhance business growth and meet capital adequacy norms.india Updated: Apr 09, 2012 21:19 IST
The government will take a view on further recapitalisation of state-owned banks by June-end to help them enhance business growth and meet capital adequacy norms.
“End of May or may be by the end of June we will have fairly clear picture as to which bank have to be capitalised and how much,” said D K Mittal, financial services secretary, when asked about the timeline of capital infusion into public sector banks.
“All banks (public sector banks), we have said, should be touching 9% of Tier-I capital and State Bank of India should be touching 11%. This is the strategy,” Mittal said on the sidelines of a CII event here. “The provision, which is there this year (for recapitalisation of banks) that will be available only when the Budget has been passed.”
The Budget has made a provision of R14,588 crore towards recapitalisation of public sector banks in 2012-13.
The government had infused R12,000 crore into public sector banks in 2011-12 to enable them maintain a minimum Tier I at 8% as on March 31, 2012, and also to increase shareholding of the government in the banks to 58%.