By IANS,
New Delhi : The government will decide on infusing around Rs.16,500 crore ($3.59 billion) in public sector banks (PSBs) to strengthen their capital base by the end of April, a top finance ministry official said Wednesday.
“As of now, we are looking at the credit flow of public sector banks by March-end. After that we will take a call on it. We expect it to be around Rs.16,500 crore,” Financial Services Secretary R. Gopalan said on the sidelines of an event organised by the industry lobby Federation of Indian Chambers of Commerce and Industry (FICCI).
He also said the amount of capital that would go to the PSU banks would be according to what these banks trade by the end of the current fiscal.
Earlier, Finance Minister Pranab Mukherjee in his budget speech had announced an additional Rs.1,200 crore infusion in the PSU banks by the end of this fiscal.
He had also proposed Rs.16,500 crore for PSU banks in 2010-11. The government had infused Rs1,900 crore in 2008-09.