Tue. Mar 19th, 2024
Central Bank of India

The Indian government is likely to inject ₹2350 crore into the Central bank of India in an attempt to help the bank meet Reserve Bank of India‘s guidelines for capital requirements, said a news report from Business Standard. 

A notification was released by Government of India on Monday regarding the release of the funds. As per the government’s estimate, this will increase the capital infusion in public sector banks (PSBs) to ₹13,600 in the current financial year.

The government is also looking forward to infuse funds in Bank of Baroda, Vijaya Bank and Dena bank prior to their merge within a probable time of six months. Government, earlier this week announced its scheme to merge these three banks. 

A source in talks with Business Standard said, “Recapitalisation may happen in these banks even before the merger takes place to meet their capital and growth requirements.”

The Center had infused a sum of ₹11,300 crores in five public sector banks mainly, Punjab National Bank, Corporation Bank, Indian Overseas Bank, Andhra Bank and Allahabad Bank under it  capital infusion program of ₹211000 crores.

In the last financial year ₹71,000 crores were injected by government by recapitalizing bonds.

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