The infusion of Tier-I capital by the Centre would boost lending by state-run banks in FY11 by Rs1.85 trillion | | | | The Union Cabinet approved a proposal to inject Rs150bn to recapitalise public sector banks in the current fiscal year. The infusion of Tier-I capital by the Centre would boost lending by state-run banks in FY11 by Rs1.85 trillion, the Government said in a statement.
The CCEA approved recapitalisation in Vijaya Bank, Dena Bank, UCO Bank, Syndicate Bank, Bank of Baroda, Central Bank of India and Bank of Maharashtra. The Cabinet approved provision of capital to the public sector banks during FY11 and FY12 so as to enable them to maintain a minimum 8% Tier I capital.
"The exact amount, mode of capitalisation and other terms and conditions would be decided in consultation with the banks at the time of infusion," the Government said. For FY12, additional capital requirements, if any, will be worked out in consultation with the PSBs based on their third quarter results for FY11.
The additional availability of credit is likely to benefit employment oriented sectors, especially agriculture, micro & small enterprises, export, entrepreneurs etc. in promotion of their economic activities which would in turn contribute substantially to the growth of the economy, the Government said.
The Government has negotiated with the World Bank for two Banking Sector Support Loans (BSSL) totaling US$3.2bn. Formalities in respect of the first tranche of US$2bn loan have already been completed | | The infusion of Tier-I capital by the Centre would boost lending by state-run banks in FY11 by Rs1.85 trillion | | | | The Union Cabinet approved a proposal to inject Rs150bn to recapitalise public sector banks in the current fiscal year. The infusion of Tier-I capital by the Centre would boost lending by state-run banks in FY11 by Rs1.85 trillion, the Government said in a statement.
The CCEA approved recapitalisation in Vijaya Bank, Dena Bank, UCO Bank, Syndicate Bank, Bank of Baroda, Central Bank of India and Bank of Maharashtra. The Cabinet approved provision of capital to the public sector banks during FY11 and FY12 so as to enable them to maintain a minimum 8% Tier I capital.
"The exact amount, mode of capitalisation and other terms and conditions would be decided in consultation with the banks at the time of infusion," the Government said. For FY12, additional capital requirements, if any, will be worked out in consultation with the PSBs based on their third quarter results for FY11.
The additional availability of credit is likely to benefit employment oriented sectors, especially agriculture, micro & small enterprises, export, entrepreneurs etc. in promotion of their economic activities which would in turn contribute substantially to the growth of the economy, the Government said.
The Government has negotiated with the World Bank for two Banking Sector Support Loans (BSSL) totaling US$3.2bn. Formalities in respect of the first tranche of US$2bn loan have already been completed | | The infusion of Tier-I capital by the Centre would boost lending by state-run banks in FY11 by Rs1.85 trillion | | | | The Union Cabinet approved a proposal to inject Rs150bn to recapitalise public sector banks in the current fiscal year. The infusion of Tier-I capital by the Centre would boost lending by state-run banks in FY11 by Rs1.85 trillion, the Government said in a statement.
The CCEA approved recapitalisation in Vijaya Bank, Dena Bank, UCO Bank, Syndicate Bank, Bank of Baroda, Central Bank of India and Bank of Maharashtra. The Cabinet approved provision of capital to the public sector banks during FY11 and FY12 so as to enable them to maintain a minimum 8% Tier I capital.
"The exact amount, mode of capitalisation and other terms and conditions would be decided in consultation with the banks at the time of infusion," the Government said. For FY12, additional capital requirements, if any, will be worked out in consultation with the PSBs based on their third quarter results for FY11.
The additional availability of credit is likely to benefit employment oriented sectors, especially agriculture, micro & small enterprises, export, entrepreneurs etc. in promotion of their economic activities which would in turn contribute substantially to the growth of the economy, the Government said.
The Government has negotiated with the World Bank for two Banking Sector Support Loans (BSSL) totaling US$3.2bn. Formalities in respect of the first tranche of US$2bn loan have already been completed | | The Union Cabinet approved a proposal to inject Rs150bn to recapitalise public sector banks in the current fiscal year. The infusion of Tier-I capital by the Centre would boost lending by state-run banks in FY11 by Rs1.85 trillion, the Government said in a statement.
The CCEA approved recapitalisation in Vijaya Bank, Dena Bank, UCO Bank, Syndicate Bank, Bank of Baroda, Central Bank of India and Bank of Maharashtra. The Cabinet approved provision of capital to the public sector banks during FY11 and FY12 so as to enable them to maintain a minimum 8% Tier I capital.
"The exact amount, mode of capitalisation and other terms and conditions would be decided in consultation with the banks at the time of infusion," the Government said. For FY12, additional capital requirements, if any, will be worked out in consultation with the PSBs based on their third quarter results for FY11.
The additional availability of credit is likely to benefit employment oriented sectors, especially agriculture, micro & small enterprises, export, entrepreneurs etc. in promotion of their economic activities which would in turn contribute substantially to the growth of the economy, the Government said.
The Government has negotiated with the World Bank for two Banking Sector Support Loans (BSSL) totaling US$3.2bn. Formalities in respect of the first tranche of US$2bn loan have already been completed.
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