MNS: The Union Cabinet on Thursday approved a proposal to inject Rs 12,517 crores in public sector banks to help them enhance the lending activity and meet the capital adequacy norms.
“About 9-10 public sector banks will benefit from the capital infusion programme,” Finance Minister P Chidambaram told media after the Cabinet meeting.
It will provide capital funds to PSBs during the year 2012-13 to the tune of Rs.12,517 crore to maintain their Tier-l CRAR at comfortable level, so that they remain compliant with the stricter capital adequacy norms under BASEL-III as well as to support internationally active PSBs for their national and international banking operations undertaken through their subsidiaries and associates.
‘In principle’ approval of the Cabinet is accorded for need based additional capital infusion in PSBs from the year 2013-14 to 2018-19 for ensuring compliance to Capital Adequacy norms under Basel- III.This will ensure compliance to the regulatory norms on capital adequacy.ANI
Read more / Original news source: http://manipur-mail.com/cabinet-approves-rs-12517-crore-capital-infusion-in-psu-banks/
