Govt to infuse Rs 15,000 cr in PSU banks in 2010-11 - Hindustan Times
close_game
close_game

Govt to infuse Rs 15,000 cr in PSU banks in 2010-11

PTI | By, New Delhi
Apr 23, 2010 04:28 PM IST

The government today approved Rs 15,000 crore capital infusion in public sector banks (PSBs) in the current fiscal, a move that will increase the lending capacity of the banks by Rs 1.85 lakh crore.

The government on Friday approved Rs 15,000 crore capital infusion in public sector banks (PSBs) in the current fiscal, a move that will increase the lending capacity of the banks by Rs 1.85 lakh crore.

HT Image
HT Image

For the year 2010-11, a sum of Rs 15,000 crore is to be infused in Tier I Capital Instruments of the PSBs, said an official release after the meeting of the Cabinet, presided Prime Minister Manmohan Singh.

Hindustan Times - your fastest source for breaking news! Read now.

The exact amount, the mode of capitalisation and other terms would be decided in consultation with the banks at the time of the infusion, it said.

For the year 2011-12, it said, additional capital requirements, if any, will be worked out in consultation with the PSBs based on their third quarter results for the year 2010-11.

The statement further said that infusion of Rs 15,000 crore in Tier I Capital Instruments of PSBs would enable them to expand their credit growth by about Rs 1,85,000 crore, it said.

This additional availability of credit is likely to benefit employment oriented sectors, especially agriculture, micro and small enterprises and entrepreneurs that in turn would contribute substantially to the growth of the economy, it said.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On