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Government to infuse Rs 48,239 crores in 12 state-run banks

Government to infuse Rs 48,239 crores in 12 state-run banks

On 20th February, 2019 the ministry of finance decided to infuse ₹48,239 crores in 12 public sector banks. This is done so that these Prompt Corrective Action (PCA) banks can meet their regulatory requirements and attain financial growth.

HISTORY

In December, 2018 Finance Minister Arun Jaitley decided to infuse ₹41,000 crores in public sector banks. This would increase their capitalization from ₹65,000 crores to ₹1.06 lakhs crores. In the same month, ₹28,615 crores was infused in 7 public sector banks by the government through recapitalization of bonds.

BENEFICIARIES OF ADDITIONAL CAPITAL

Corporation Bank is the major beneficiary earning a capital of ₹9,086 crores followed by Allahabad Bank earning ₹6,896 crores. These 2 were the “Better Performing” banks under the PCA supervision of the RBI.

Corporation Bank – ₹9,086 crores
Allahabad Bank – ₹6,896 crores
Bank of India – ₹4,638 crores
Bank of Maharashtra – ₹205 crores.
Punjab National Bank – ₹5,908 crores.
Union Bank of India – ₹4,112 crores.
Andhra Bank – ₹3,256 crores.
Syndicate Bank – ₹1,063 crores.
Central Bank – ₹2,560 crores.
United Bank – ₹2,839 crores.
UCO Bank – ₹3,330 crores.
Indian Overseas Bank – ₹3,806 crores.

CONCLUSION

These banks have showed a consolidated profit and have done well under the PCA. The shares of Corporation Bank has gone up by 17.66% and Allahabad Bank by 5.09%. Similarly, the shares of Bank of India and Maharashtra have gone up by 2.57% and 5.69% on 21st January,2019 at 2:20 pm.

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