Govt to infuse Rs 48,239 cr in 12 PSU banks, PNB to get Rs 5,908 crore
New Delhi: The Finance Ministry on Wednesday announced to pump in Rs 48,239 crore in 12 public sector banks (PSBs) in this fiscal to help them maintain regulatory capital requirements and finance growth plans.
With this funding, the total amount of capital infusion would increase to Rs 1,00,958 crore of the planned recapitalisation of Rs 1.06 lakh crore for PSBs for the current fiscal, according to Financial Services Secretary Rajiv Kumar.
The remaining Rs 5,000 crore capital infusion would be used as buffer for any contingency or growth capital for Bank of Baroda which is in the process of merging Dena Bank and Vijaya Bank with itself.
"It (pending Rs 5000 crore) may be used for any contingency or for growth capital wherever it is necessary including amalgamated entity of Bank of Baroda," Kumar said.
Corporation Bank is the biggest beneficiary of this round of capital infusion with Rs 9,086 crore of funding, followed by Allahabad Bank with Rs 6,896 crore.
Explaining the rationale for giving higher capital to these two banks, Kumar said equipping these two better performing banks, currently under the Prompt Corrective Action (PCA) supervision of the RBI, would help meet requisite capital thresholds of 7.375 CET-1 ratio, 8.875 per cent Tier I ratio, 10.875 per cent of capital-to-risk weighted assets ratio (CRAR) and the net NPA ratio threshold of below 6 per cent.
Further, Rs 4,638 crore and Rs 205 crore will be provided to Bank of India and Bank of Maharashtra. These banks have recently come out of the regulatory supervisory framework PCA of the RBI.
Kumar further said Punjab National Bank will get Rs 5,908 crore, Union Bank of India Rs 4,112 crore, Andhra Bank Rs 3,256 crore and Syndicate Bank Rs 1,603 crore.
The government will pump in Rs 12,535 crore in four other banks under PCA -- Central Bank of India, United Bank, UCO Bank and Indian Overseas Bank.
The government in December had increased the outlay by Rs 41,000 crore for infusion in public sector banks. As a result, the total recapitalisation in the current fiscal from Rs 65,000 crore to Rs 1.06 lakh crore.
Subsequently, the government infused Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds.
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Rally against "vote chori" to protect every citizen's right, says D K Shivakumar
New Delhi/ Bengaluru (PTI): Karnataka Deputy Chief Minister D K Shivakumar asserted that the Congress party's rally against alleged 'vote chori' (vote theft) in New Delhi is to protect every citizen's right to vote.
Accusing BJP government at the Centre of restricting vehicles with Congress workers from entering Delhi to participate in the party's mega rally, Shivakumar, who is also the Karnataka Congress chief, said that about 3,500-4,000 party leaders and workers have come from the state to participate in the rally.
Congress is holding a mega rally at Ramlila Maidan in Delhi on Sunday, against the alleged "vote chori" (vote theft).
"We (state Congress) have made accommodation for 1,500 people (party workers and leaders), more than 2,000 people have made their own arrangements. They have come by flight and train. About 3,500-4,000 people have come. About 1.42 crore signatures have been gathered from the state (as part of its signature campaign)," Shivakumar said.
Speaking to reporters in New Delhi, he said, there is a lot of enthusiasm among party workers and leaders, and they are committed to saving the Congress party in the state and the country, and protecting the citizens' right to vote.
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"As per the information that I have received this morning, the BJP and the central government are stopping vehicles (with Congress workers) from coming to Delhi, they are apparently not allowing vehicles to enter the city. I don't know why they are doing this. I don't know why the BJP and the central government are so worried. But no one can stop our voice," he added.
Further stating that Congress is fighting on behalf of the people of the country to protect their right to vote, the Deputy CM said, there is no politics in it. He said, all the leaders will be leaving for the protest venue from the Congress office in Delhi.
Reacting to a question on Union Home Minister Amit Shah reportedly terming Congress party's rally as an "act of frustration" due to electoral losses, and similar criticism from other BJP leaders, he said, he doesn't want to react to anyone from the saffron party.
"Let them say anything for their enjoyment. We, the Congressmen, won't think about electoral victories and losses. We think about the sacrifice made by our elders during the freedom struggle, to give democracy and a constitution to the country. Sonia Gandhi sacrificed power (PM post) and gave it to an economist like Manmohan Singh. Indira Gandhi and Rajiv Gandhi sacrificed their lives for this country," he said.
Jawaharlal Nehru and Mahatma Gandhi went to jail for the sake of this country, he further pointed out, adding that, "A hundred years ago, Gandhi took over the leadership of the freedom struggle; today in these difficult times, Mallikarjun Kharge has taken the responsibility as the Congress President."
Shivakumar, responding to a question, said, Chief Minister Siddaramaiah will also be attending the rally. "Both of us will go together (to the venue) from the Indira Gandhi Bhavan (in Delhi)."
He, however, did not wish to comment on any meeting with the Congress high command, including Soina Gandhi, on the issue of leadership change in Karnataka. Meanwhile, slogans calling Shivakumar the "next CM" were raised by his supporters as the Deputy CM left the Karnataka Bhavan.
