Govt to infuse Rs 15,500 cr in PSU banks

The government today said it will infuse about Rs 15,500 crore in the public sector banks during the current fiscal to enhance their financial strength. "I understand the problems, the constraints under which the Indian banking system are suffering for some time. We are trying to help them as you have noticed in the last two years in order to build up the capital adequacy of the Indian banking system particularly public sector banks, I have injected Rs 32,000 crore," Finance Minister Pranab Mukherjee said here. Click here for Cloud Computing Also Read Related Stories News Now - AI unions oppose govt move to hive off MRO, engg units - In West Bengal, culture pips welfare in fund allocation - Citizens respond well to seek govt services in Mysore - Govt may allow fresh cotton exports post assessing production - Diesel may get dearer once Finance Bill approved - Air India to get Rs 30,000 cr equity over 9 years "To improve the capital adequacy of the public sector banks, I am going to provide around Rs 15,500 crore in 2012-13 because we want our banks should have adequate capital so that they can be in a position to compete with the others. "We can fully come to expectations and reach the parameters of the Basel III norms," he said at the 118th foundation day function of Punjab National Bank. In 2010-11, the government pumped in Rs 20,157 crore for infusion in public sector banks to maintain tier I capital at 8% and increase the government equity in some banks to 58% in 2010-11. In the following year, public sector banks got Rs 12,000 crore for improving their capital adequacy ratio. Indian banking system, the Finance Minister said, "It had some repercussions but substantially it came out of [2008 global] crisis unscathed. Thanks to the prudent management, well placed regulatory mechanism and also individual judgements of the bankers."