Government is all set to pump in large amounts of money to 20 public sector banks in the country. Led by IDBI bank with a share of INR 10,610 Cr, the govt. is preparing to infuse a capital of INR 88,139 to the 20 public sector banks. On the other hand, Punjab and Sind Bank is the one, which gets the smallest piece of the cake – INR 785Cr. The largest public sector bank, State Bank of India will get IN Rs 8,800 Cr. Announced by Finance Minister Arun Jaitely, the move was part of the 2.1 Lakh Crore bank recapitalization plan announced by govt. last October.
The recapitalization plan, which is to be spread over two financial years, is essentially meant for ensuring governance of banks. It must be added that, all the PNBs are struggling with the piling Non Performing Assets (NPAs).
