Govt to infuse Rs 55250 cr in banks

first_imgNew Delhi: The government on Friday said it will infuse about Rs 55,000 crore in public sector banks to enhance their capital base so that they can accelerate lending in a bid to bolster growth. This was the second set of measures announced by Finance Minister Nirmala Sitharaman to prop up the economy and at least one more is expected next week. All the anchor banks in the consolidation process will get capital support. As a result, Punjab National Bank will get Rs 16,000 crore, Union Bank of India Rs 11,700 crore, Canara Bank Rs 6,500 crore and Indian Bank Rs 2,500 crore. Besides, Bank of Baroda will get Rs 7,000 crore, Indian Overseas Bank Rs 3,800 crore and Central Bank of India Rs 3,300 crore. This are indicative figures and the actual capital infusion may vary depending on banks’ assessment, Sitharaman told reporters here. Giving details of governance reforms in the public sector banks, she said these will bring transparency and strengthen bank boards. To make management accountable, a board committee of nationalised banks will appraise performance of GM and above ranks, including managing director, and also recruit Chief Risk Officer at market-linked compensation to attract best talent, she said. To enable succession planning, she said boards will decide a system of individual development plans for all senior executive positions.last_img

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