The government of India has announced £8.81 billion capital infusion in 20 public sector banks during the current fiscal, with IDBI Bank getting the most- £1.06 billion. Finance Minister Arun Jaitley said his ministry had undertaken a detailed exercise on the amount of capital to be infused into the PSBs. In the current fiscal, ending March 31, the State Bank of India will get £880 million capital and Bank of India £923.2 million. UCO Bank will get £650.7 million, Punjab National Bank £547.3 million, Bank of Baroda £537.5 million, Central Bank of India £515.8 million, Canara Bank £486.5 million, Indian Overseas Bank £469.4 million and Union Bank of India £452.4 million.
Oriental Bank of Commerce would get £357.1 millione, Dena Bank £304.5 million, Bank of Maharashtra £317.3 million, United Bank of India £263.4 million, Corporation Bank £218.7 million, Syndicate Bank £283.9 million, Andhra Bank £189 million, Allahabad Bank £150 million, Punjab and Sind Bank £78.5 million. Jaitley said steps need to be taken to ensure governance of banks follows highest standards and there is a need for institutional mechanism to make sure the past is not repeated.
“We inherited a very major problem and therefore, we have been involved in finding a solution to that problem,” he said. He added, “Our role really is not only to find a solution but also to create an institutional mechanism to make sure that what happened in the past is not repeated.” The PSBs face mounting non-performing assets or bad loans, putting the financial sector under stress. “Now the entire object of this exercise is that the government has the prime responsibility of keeping the public sector banks in good health,” Jaitley said.
