Rajeev Chandrasekhar's official website - Member of Parliament

GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF FINANCIAL SERVICES

 

 

RAJYA SABHA
UNSTARRED QUESTION NO.822
TO BE ANSWERED ON THE 29th NOVEMBER, 2011 / AGRAHAYANA 8, 1933 (SAKA)
Infusion of Capital in PSBs

 

 

 

 

822. SHRI RAJEEV CHANDRASEKHAR:

 

Will the Minister of FINANCE be pleased to state:-

 

(a)   Whether Government proposes to infuse additional capital in Public Sector Banks (PSBs) and financial institutions to bolster their capital base; and

 

(b)   If so, the details thereof, bank-wise, and the methods by which this would be done?

 

 

 

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)

 

 

(a)   & (b): Yes, Sir. In order to maintain a minimum Tier I CRAR of 8 per cent as on 31.03.2012 in Public Sector Banks, Government has made a provision of RS.6000 crore in the Union budget for the year 2011-12. A provision has also been made for a sum of Rs, 1000/- crore and Rs. 300 crore for equity capital to be infused in IIFCL and Exim Bank respectively in the Budget for the year 2011-12. Further, Cabinet has also approved for augmenting the capital base of National Bank for Agriculture and Rural Development (NABARD) by infusing Rs. 3000 crore as Government equity in two tranches of Rs. 1000 crore in 2011 -12 and Rs. 2000 crore during 2012-13. Bank-wise requirement and modalities of capital infusion are being finalized.